Financial Intelligence Unit (FIU) has imposed a fine of ₹18.82 crore ($2.25 million) on the crypto exchange Binance for operating in violation of anti-money laundering regulations. Binance did not immediately respond to an email seeking comment.
Virtual digital asset service providers such as crypto exchanges are required to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
In May, Binance had registered with the FIU as the exchange sought to resume operations, after the watchdog FIU issued show-cause notices to nine offshore exchanges operating in violation of rules.
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The watchdog had also asked the Ministry of Electronics and Information Technology (MeitY) to block online access to the exchanges. Crypto exchange KuCoin had registered with FIU in March but faced a smaller penalty amount of ₹34.5 lakh.
Canada's anti-money-laundering agency had also imposed a fine of $4.38 million on Binance in May for violation of anti-money laundering rules. Changpeng Zhao, the former chief executive of Binance, was sentenced to four months in prison in May by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating the country's laws against money laundering.
Published - June 20, 2024 11:56 am IST
