India Fines Binance $2.25 Million for Anti-Money Laundering Violations

Preeti Bali / 7:48 am / June 21, 2024

The Monetary Insight Unit (FIU), India’s monetary guard dog, has forced a fine of Rs 18.82 crore (roughly $2.25 million) on Binance, the world’s biggest digital currency trade. This punishment comes simply a month after the FIU conceded Binance enlistment to work in India.

Crackdown on Unregistered Crypto Activity

The FIU’s activity features its emphasis on managing the digital money market in India. As indicated by reports, the monetary guard dog gave notification to nine seaward trades, including Binance, for abusing against illegal tax avoidance (AML) guidelines. These guidelines are intended to forestall monetary violations, for example, illegal tax avoidance and psychological oppressor funding.

Binance Faces Scrutiny for Past Operations

In December 2023, Binance received a show-cause notice for providing services to Indian clients and conducting operations within the country without complying with mandatory AML obligations under the PMLA (Prevention of Money Laundering Act) act. The FIU’s press release details these violations as the primary reason for the penalty.

Regulation and Growth: A Balancing Act

This development comes alongside the FIU’s approval of KuCoin, another cryptocurrency exchange platform, in May 2024. However, KuCoin also faced a penalty of Rs 34.5 lakhs after a regulatory hearing. This approach suggests the FIU’s commitment to regulating the crypto space while allowing compliant businesses to operate.

Global Trend of Cryptocurrency Regulation

The Binance penalty aligns with the increasing international focus on regulating cryptocurrency exchanges. In May 2024, Canada’s financial watchdog imposed a $4.4 million fine on Binance for similar violations.

Industry Response: Regulation as a Catalyst for Growth

Commenting on the development, Shivam Thakral, CEO of BuyUcoin, stated that the substantial penalty signifies stricter scrutiny and regulation within the digital asset space. He believes these regulations will ultimately bring more structure and organization to the industry, paving the way for responsible Web3 businesses to flourish. Thakral further expressed optimism that these efforts will facilitate India’s growth into a $1 trillion digital economy.

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