India’s Financial Intelligence Unit (FIU) has fined Binance, the world’s largest crypto exchange, 188.2 million rupees ($2.25 million) for operating in the country in breach of local anti-money laundering regulations. India mandates that virtual digital asset service providers like crypto exchanges must register with the FIU as reporting entities and adhere to its anti-money laundering protocols.
Binance has not yet responded to an email seeking comment. Earlier in May, Binance registered with the FIU as part of its efforts to resume operations in India, following show-cause notices issued to nine offshore exchanges found violating local regulations. The FIU also urged the Ministry of Electronics and Information Technology to block online access to these exchanges.
In March, another crypto exchange, KuCoin, registered with the FIU but faced a smaller penalty of 3.45 million rupees. Additionally, Canada’s anti-money laundering agency fined Binance $4.38 million in May for similar violations.
In a separate legal development, Changpeng Zhao, Binance’s former CEO, was sentenced to four months in prison by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating the United States’ anti-money laundering laws.
