Binance Fined $2.2M by India’s Financial Intelligence Unit

Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, conditional to paying a penalty.

AccessTimeIconJun 20, 2024 at 5:11 a.m. UTC
Updated Jun 20, 2024 at 6:55 p.m. UTC
  • India’s Financial Intelligence Unit imposes $2.2 million fine in Binance.
  • The anti-money laundering unit approved Binance in May, conditional to penalty payment.

Binance, the world's largest cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) for providing services to Indian clients without adhering to the nation's anti-money laundering rules, India's anti-money laundering unit announced Thursday.

Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from India for "operating illegally" in January 2024.

However, Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India's Financial Intelligence Unit (FIU) in May, conditional to paying a penalty after a hearing with the FIU.

"After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated," the FIU announcement said.

"We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT)," said Dilip Chenoy, Chairman, Bharat Web3 Association.

"Consequently, the Director FIU-IND" ordered the imposition of a "total penalty" of approximately $2.2 million on Binance along with "specific directions to ensure diligent compliance with the obligations."

"We are aware of the FIU's order and are reviewing it now to determine next steps. We are grateful to have the opportunity to continue our mission to serve the vibrant Indian crypto community. We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities, " Binance said in a statement.

UPDATE (June 20, 06:40 UTC): Adds comment from Bharat Web3 Association.

UPDATE (June 20, 12:30 UTC): Adds response from Binance.

Edited by Omkar Godbole.


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Amitoj Singh

Amitoj Singh is a CoinDesk reporter.