Binance Slapped With $2.25 Million Penalty in India for Money Laundering Violations – Tech Times


After a tumultuous 2023 for Binance, it is now facing another scrutiny from Indian regulators, where it has been slapped with a hefty penalty of $2.25 million. This was because of alleged violations in India’s anti-money laundering regulations, now cracking down on Binance’s operations after recently registering to the regulatory agency. 
It is known that Binance’s last scrutiny before this was with the United States Securities and Exchange Commission (SEC), and its case also centered on money laundering violations.
A new report from Reuters shared that Binance is yet again slapped with a massive penalty, with India’s Financial Intelligence Unit (FIU) bringing forth the latest complaint against the crypto exchange platform. This centers on the company’s operations in the country, which violated its regulations on anti-money laundering, following a penalty from Canada against Binance for a similar violation. 

(Photo : Kanchanara from Unsplash)

India and FIU require crypto exchange companies and virtual digital asset service providers to register with its regulators, complying with its rules and regulations for anti-money laundering. 
However, Binance only registered with FIU in May and is looking to resume its operations in the country after India’s regulating agency cracked down on these platforms. 
Read Also: Philippines’ SEC Requests Binance to be Removed From App Stores, Citing Security Risk For Filipino Investors
It was not expounded what specific activities from Binance were subject to the anti-money laundering violations, but the company is now facing this new scrutiny from India.  Binance is still facing a block in India for its violations, with the Ministry of Electronics and Information Technology imposing against online access to Binance.
The massive crackdown of the United States against Binance saw a significant turn for the company last year, as it faced the issue and its former CEO, Changpeng Zhao, who will now serve his time in prison. Instead of getting the recommended three years, Zhao only got four months, which is 1/12th of the recommendations, under his plea deal. 
It is known that Binance initially faced fraud, wire fraud, money laundering, and conspiracy charges from the US Department of Justice, also facing sanctions from other regulators. This led to the country’s largest settlements in a criminal case, with as much as $4.3 billion to be paid to the US government after the company accepted the plea deal.
Binance is now looking to rebuild its company and turn its back on the past. A new CEO is leading the company, projecting a significant operation in the future. However, it saw yet another scrutiny, this time from India and its regulator, who are now charging Binance a $2.25 million fine for its alleged money laundering violations. 
Related Article: Binance CEO Richard Teng Sees 2024 as ‘Landmark’ Year for Crypto Platform

Isaiah Richard

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