Binance registered with the FIU in May in an effort to conform to Indian legislation.
The exchange had failed to properly register with the FIU before starting business.
Crypto exchange Binance has been fined $2.2 million by the Financial Intelligence Unit (FIU) of India. Binance is reportedly accused of failing to comply with local anti-money laundering (AML) standards, which is the reason for the penalty. For Binance, already beset by convoluted international financial rules, this new development poses a formidable regulatory hurdle.
The FIU has said that Binance was fined heavily because it failed to register in the country and adhere to local anti-money laundering (AML) regulations.
Conforming to Indian Regulations
In context, crypto exchanges and other suppliers of virtual assets in India are required to register as reporting companies with the Financial Intelligence Unit (FIU). And follow stringent anti-money-laundering regulations. The exchange had failed to properly register with the FIU before starting business in the nation. This was Binance’s error and the reason for the penalties.
This case is significant since it follows the FIU’s prior prosecution of many offshore exchanges for comparable infractions. This is only one small step in India’s larger governmental attempt to rein in the crypto market.
Binance, meanwhile, registered with the FIU in May in an effort to conform to Indian legislation. The watchdog has already warned many offshore exchanges, Binance included, for doing business without the required permission, prompting this attempt. Regardless of this endeavor, the present financial penalty is a result of Binance’s previous failure to comply.
Moreover, regulatory hurdles for Binance continue to mount, and this punishment in India is just the latest in a long line. For comparable AML regulation breaches, Binance was fined $4.38 million in May by Canada’s anti-money laundering agency. The exchange continues to have challenges in meeting the requirements of several foreign regulatory systems, as shown by these recurring concerns.
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