The Financial Intelligence Unit (FIU) of India imposed a fine of Rs 18.82 crore on Binance, which is the world's largest crypto exchange, for operating in the country, violating the anti-money laundering regulations.
Established with the intention of combating money laundering and other such crimes, the FIU is responsible for receiving, processing, analyzing, and disseminating information related to suspect financial transactions.
Virtual digital asset service providers like crypto exchanges are required to register with FIU and comply with the authority's anti-money laundering rules.
Last year, FIU issued a show-cause notice to Binance and several other offshore exchanges that were operating in India violating the country's rules.
"After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated," a notification issued to Binance on Thursday stated.
"Furthermore, specific directions have also been issued to Binance to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for the prevention of money laundering activities and combating the financing of terrorism (AMLCFT)," it further read.
About Binance
Founded in 2017 by serial entrepreneur Changpeng Zhao, Binance is the largest digital asset exchange in the world by trading volume. It is a leading blockchain ecosystem, comprising of Binance Exchange, Labs, Launchpad, Academy, Research, Trust Wallet, Charity, and NFT, among others.
