Binance will pay $2.3 million in fines for multiple violations

The Financial Intelligence Unit of India (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on crypto exchange Binance for providing services to local customers without following anti-money laundering (AML) regulations. The agency clarified that the fine was imposed for numerous violations of the Prevention of Money Laundering Act (PMLA) 2002.

Binance operates as a virtual asset service provider, which requires it to maintain transaction records and reporting under the PMLA, as well as enforce strict AML measures.

However, the FIU investigation found that Binance did not comply with these obligations when providing services to Indian customers.

In January, authorities issued cease and desist orders to Binance and several other offshore crypto exchanges due to illegal activities. In April, media reported that Binance was ready to return to the Indian market after paying a fine as a legal entity registered with the FIU. In May, Binance became the second foreign exchange after KuCoin to receive permission to operate. Earlier this month, the Nigerian Revenue Authority dropped charges against Binance executives who, along with the exchange, were defendants in a tax evasion case amounting to more than $20 billion.

Also in June, the number of registered users on Binance exceeded the 200 million mark. This event occurred almost seven years after the launch of the platform. Binance now represents about 36% of the global crypto user base, which Triple-A Research estimates to be 562 million. Late last year, Binance agreed to pay $4.3 billion in fines to US agencies to settle money laundering charges.