Binance Hit with Rs 18.82 Crore Penalty over Anti-Money Laundering Violations

The Financial Intelligence Unit has fined Binance Rs 18.82 crore for violating India's anti-money laundering laws. Binance failed to register as a Virtual Digital Asset Service Provider and neglected to share suspicious transaction reports. The penalty follows a similar order against another crypto exchange, KuCoin.

The Financial Intelligence Unit (FIU) has imposed a penalty of Rs 18.82 crore on Binance, the world's largest crypto exchange, for breaching India's anti-money laundering legislation. This historic move marks a step towards stricter financial regulations in India's burgeoning crypto market.

The federal agency accused Binance of dereliction of duty by failing to register as a Virtual Digital Asset Service Provider (VDASP) and neglecting to submit timely suspicious transaction reports. The Prevention of Money Laundering Act (PMLA) mandates such entities to maintain and share records to curb financial crimes.

After reviewing Binance's submissions, the FIU's director found the allegations substantiated, leading to the imposition of the hefty fine. Binance has acknowledged the order and expressed its eagerness to comply with Indian regulations, hoping to reenter the market positively.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)