Binance to pay massive fine of Rs 188200000 in India to restart operations, penalty imposed for…

Leading blockchain and cryptocurrency platform Binance will be required to pay Rs 18.82 crore fine to restart operations in India.

The Financial Intelligence Unit (FIU) has imposed this penalty on the company for operating in the country in violation of domestic anti-money laundering regulations.

“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 by FIU said on Thursday.

“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 added.

Binance registered with the FIU in May as it sought to resume operations in the country. This came after the financial watchdog issued a show-cause notice in December 2023, along with eight other offshore exchanges that were operating in violation of local rules.

The crypto exchange was barred from operating in India for not complying with local regulations, as part of the financial watchdog’s crackdown on offshore crypto exchanges operating in the country without registration.

Meanwhile, rival crypto exchange KuCoin got fully registered and became operational after paying a fine of Rs 34.5 lakh.

(Except for the headline, this story has not been edited by DNA staff and is published from IANS)