India’s Financial Intelligence Unit (FIU) has fined Binance $2.25 million (188.2 million rupees) for violating the Prevention of Money Laundering Act (PMLA), 2002, by operating without proper registration. The fine follows the exchange’s ongoing regulatory issues in various countries, including money laundering and tax evasion allegations in Nigeria.
According to the FIU’s statement on Thursday, Binance’s activities as a Virtual Digital Asset Service Provider (VDA SP) in India required compliance with the PMLA. Despite registering with the FIU in May after a show-cause notice in December 2023, Binance failed to meet the regulatory standards.
The FIU’s order, issued on June 19, 2024, confirmed that Binance did not adhere to its statutory obligations, resulting in the substantial penalty. This action is part of India’s broader regulatory measures to ensure compliance within the cryptocurrency sector.
