Binance Fined $2.2 Million by India’s Financial Intelligence Unit

As a researcher with experience in the field of financial regulation and cryptocurrencies, I find the recent development between Binance and India’s Financial Intelligence Unit (FIU) intriguing.

The Indian anti-money laundering authority has imposed a fine of approximately $2.2 million (18.82 crore INR) on Binance, the largest cryptocurrency exchange globally, for offering services to Indian clients without complying with the country’s anti-money laundering regulations. This announcement was made public on Thursday by the Indian authority.

In January 2024, Indian authorities served show-cause notices to Binance and several other offshore cryptocurrency exchanges, leading us (as the analyst) to pack up our operations and leave India due to allegations of illegally conducting business in the country.

As a researcher investigating the regulatory landscape of cryptocurrency exchanges in India, I came across an interesting development. In May, Binance and KuCoin became the initial offshore crypto entities to secure approval from the Financial Intelligence Unit (FIU). Notably, this approval came with the condition that both exchanges pay a penalty following a hearing with the FIU.

Based on the evidence presented by Binance and the Director of FIU-IND, the findings revealed that the accusations against Binance were validated.

Following this development, the Director of FIU-IND imposed a penalty of roughly $2.2 million on Binance and provided detailed instructions for strict adherence to regulatory requirements.

Binance did not immediately respond to a CoinDesk request for comment.