Indian authorities have fined Binance, the world’s largest cryptocurrency exchange, $2.2 million, citing violations of its anti-money laundering regulations.
India’s Financial Intelligence Unit (FIU) announced on Thursday that it has imposed a significant penalty on Binance for operating within India without complying with statutory obligations under the Prevention of Money Laundering Act (PMLA).
The FIU’s director reviewed Binance’s submissions and concluded that the charges against the crypto firm were valid, leading to the imposition of a penalty and specific directives aimed at ensuring future compliance.
The statement from FIU-IND highlighted that after considering both written and oral submissions from Binance, the director found substantial evidence supporting the allegations.
The imposed penalty totals approximately $2.2 million (about ₹16.5 crore), accompanied by directives designed to enforce diligent adherence to regulatory obligations.
In response, Binance acknowledged the FIU’s directive and stated that they are currently assessing it to determine their next course of action.
The crypto exchange expressed a commitment to cooperate as a reporting entity and indicated interest in potentially re-entering the Indian market in the future, emphasizing their dedication to transparency and regulatory compliance.
Meanwhile, Binance is concurrently embroiled in legal disputes in Nigeria over allegations of money laundering and tax evasion.
Earlier this year, Binance announced its withdrawal from the Nigerian market and the removal of naira-related assets amidst regulatory pressures in the country.
The situation escalated when Binance accused Nigerian officials of soliciting a $150 million bribe to drop legal proceedings and release their detained executive, Tigran Gambaryan.
The Nigerian government promptly refuted these allegations, dismissing them as attempts at coercion.
These developments underscore the challenges faced by Binance on multiple fronts, highlighting the complex regulatory landscape that crypto firms navigate globally.
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