As a crypto investor with experience in navigating the volatile digital asset market, I’ve grown accustomed to keeping a close eye on regulatory developments. The latest news regarding Binance being penalized in India for failing to comply with local AML regulations is a cause for concern.
As a researcher, I’d put it this way: Binance faces another legal challenge, specifically in India. The Financial Intelligence Unit (FIU) in India has imposed a fine of approximately $2.25 million or Rupees 188.2 crores against me, Binance, for allegedly violating the Prevention of Money Laundering Act (PMLA), 2002.
Previously, this financial regulatory body issued a “notice of explanation required” to this offshore exchange, preventing it from catering to Indian clients. Similar notices were given to several other offshore platforms providing services to Indians.
On June 19, 2024, the Financial Investigation Unit (FIU) disclosed that Binance, identified as a Reporting Entity (RE), allegedly neglected to adhere to anti-money laundering (AML) regulations while functioning as a Virtual Digital Asset Service Provider (VDA SP) within the jurisdiction of India.
Under Indian legal guidelines, crypto platforms are required to adhere strictly to the country’s intricate Anti-Money Laundering (AML) regulations. Nevertheless, Binance allegedly enabled money laundering and neglected to share mandatory transaction data with the Financial Intelligence Unit (FIU) and other relevant authorities. Reports suggest that Binance might not have retained such records for reporting purposes either.
Based on the evidence presented by Binance during both written and verbal hearings, the Financial Intelligence Unit-India (FIU-IND) determined that the allegations against Binance were valid. Following this determination, FIU-IND imposed a penalty on Binance. The company was previously allowed to resume operations in India under the condition that it would attend a hearing with the government agency and acknowledge the consequences of its past actions.
As a crypto investor using Binance, I understand that the platform has been advised by the Financial Intelligence Unit (FIU) to strengthen its Anti-Money Laundering (AML) program and reporting procedures in India moving forward. To ensure continued access to Binance’s services, it is crucial for me and the exchange to prioritize AML compliance in the Indian market. Failure to do so may result in additional fines or penalties.
Binance could be subjected to fines totalling $4.4 million in Canada due to non-compliance with local regulations. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) accused Binance of not registering as a money services business and reporting transactions surpassing $10,000. However, Binance has lodged an appeal to contest these charges.
Photo by Vadim Artyukhin on Unsplash
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2024-06-20 23:43