Breaking: Binance Hits With $2.2M Fine From India’s FIU

The leading global crypto exchange, Binance, faces a $2.2 million fine from India’s Financial Intelligence Unit (FIU). Notably, the fine was imposed on Binance as it allegedly failed to comply with local anti-money laundering (AML) regulations. This penalty marks a significant regulatory challenge for Binance as it navigates complex international financial laws.,India’s Financial Intelligence Unit (FIU) has imposed a substantial fine on Binance, amounting to 188.2 million rupees or $2.25 million, for failing to adhere to the country’s anti-money laundering regulations. According to the FIU, Binance operated within India without proper registration and did not comply with local anti-money laundering (AML) requirements, prompting a hefty penalty.,For context, India mandates the crypto exchanges and other virtual asset service providers to register with FIU as reporting entities and adhere to strict AML guidelines. Binance’s oversight in this regard led to the fine, as the exchange had not registered appropriately with the FIU before commencing operations in the country.,Notably, this move follows previous actions taken by the FIU against several offshore exchanges for similar violations. It reflects the broader regulatory effort of India to tighten control over the cryptocurrency market.,Meanwhile, earlier this year, Binance attempted to align itself with Indian regulations by registering with the FIU in May. This effort came after the watchdog issued warnings to multiple offshore exchanges, including Binance, for operating without proper authorization. Despite this attempt, Binance’s prior non-compliance led to the current financial penalty.,This fine in India adds to Binance’s growing list of regulatory challenges worldwide. In May, Canada’s anti-money laundering agency fined Binance $4.38 million for similar AML rule violations. Such repeated issues underscore the exchange’s ongoing struggle to comply with varying international regulatory frameworks.,Also Read: VanEck Bitcoin ETF Debuts on Australian Stock Exchange ASX, Will It Get US-Like Response?,Binance’s regulatory troubles extend beyond India. Last year, Changpeng Zhao, Binance’s former CEO, faced legal consequences in the United States. Besides, Zhao was sentenced to four months in prison by a U.S. District Judge in Seattle after pleading guilty to charges related to money laundering violations in May.,Meanwhile, the recent actions by the FIU and other international bodies reflect a growing trend among regulators to enforce stricter compliance measures in the rapidly evolving cryptocurrency sector. As the largest crypto exchange, Binance’s compliance failures attract significant attention and set a precedent for the industry.,Notably, other crypto exchanges are also feeling the heat. For instance, KuCoin, another major player, registered with the FIU in March but still incurred a smaller penalty of 3.45 million rupees. This indicates that regulatory bodies are keen on ensuring full compliance from all market participants, regardless of their size.,Binance’s situation in India illustrates the broader challenges that global crypto exchanges face when operating across different jurisdictions. As regulatory environments tighten, exchanges must adapt to meet local laws or risk significant financial and legal repercussions.,Also Read: XRP Whales Shift 52M Coins Amid Price Recovery,