India’s Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange, $2.25 million (188.2 million rupees) for operating in the country without proper registration. The FIU announced the penalty in a statement released on Thursday.
The Indian authorities found that Binance violated three sections of the Prevention of Money Laundering Act (PMLA), 2002. This comes as Binance faces legal challenges in Nigeria over money laundering and tax evasion accusations. Nigerian authorities claim Binance laundered over $35 million and are pursuing separate tax evasion charges.
Despite registering with the FIU in May to resume operations after a show-cause notice in December 2023, Binance failed to comply with regulatory requirements, resulting in the hefty fine. The FIU’s statement highlighted Binance’s failure to fulfill its obligations under the PMLA as a Virtual Digital Asset Service Provider.
The FIU’s Director concluded that the charges against Binance were substantiated after reviewing the exchange’s submissions, leading to the June 19, 2024, order imposing the penalty.
In Nigeria, Binance shut down its naira-dollar services following accusations from the Federal Government of manipulating foreign exchange rates. This led to stricter oversight of cryptocurrency platforms. On February 28, Nigerian authorities detained two Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, amidst a broader crackdown on currency speculation. Although a Federal High Court dismissed initial tax evasion charges, the Federal Inland Revenue Service has filed amended charges, naming Binance as the sole defendant.
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