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Binance Clears Way to Return to India with $2.25 Million Fine
India’s Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange by volume, 188.2 million rupees (about $2.25 million) for violating the country’s anti-money laundering rules. However, it is unclear when Binance will resume operations in the country.
Binance was one of nine foreign cryptocurrency exchanges operating in India, whose access was blocked by the Indian FIU last December. The order even required Apple and Google to remove local access to these cryptocurrency exchanges from their application stores.
As per existing rules in India, cryptocurrency exchanges must register with the FIU as reporting entities and follow local anti-money laundering regulations. Additionally, there are requirements to withhold taxes on crypto transactions and profits.
Among the blacklisted exchanges, Seychelles-based KuCoin was the first to comply with Indian regulations, complying within a month and paying a penalty of 3.45 million rupees. Although Binance has not made any official announcement, reports have revealed it the exchange was planning to re-establish its operations in the country paying a penalty.
Binance already registered with the FIU last May, which will allow it to resume its operations in India.
Binance’s Regulatory Issues
Despite being the largest cryptocurrency exchange, Binance has faced regulatory backlash around the world. The exchange initially expanded its operations across borders without focusing on local licensing, but had to abandon that strategy after a massive regulatory backlash.
Meanwhile, Canada’s anti-money laundering agency also fined Binance $4.38 million in May for violating local anti-money laundering regulations. However, Binance appealed this fine, arguing that it was not targeting Canadian residents. Interestingly, the exchange had already announced its plans to exit the Canadian market in May 2023.
In the United States, Binance’s troubles have been severe, as the global exchange was forced to leave the country after a $4.3 billion settlement with the Department of Justice. The exchange paid another $2.85 billion to the US commodities regulator. Additionally, former CEO Changpeng Zhao pleaded guilty to one count of violating the Bank Secrecy Act and received a four-month prison sentence.
Recently, also the US division of Binance.com, Binance.US lost its money transmitter license in seven states. Additionally, the exchange has suspended new onboarding in Connecticut, Georgia, Ohio, Minnesota and Washington.
India’s Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange by volume, 188.2 million rupees (about $2.25 million) for violating the country’s anti-money laundering rules. However, it is unclear when Binance will resume operations in the country.
Binance was one of nine foreign cryptocurrency exchanges operating in India, whose access was blocked by the Indian FIU last December. The order even required Apple and Google to remove local access to these cryptocurrency exchanges from their application stores.
As per existing rules in India, cryptocurrency exchanges must register with the FIU as reporting entities and follow local anti-money laundering regulations. Additionally, there are requirements to withhold taxes on crypto transactions and profits.
Among the blacklisted exchanges, Seychelles-based KuCoin was the first to comply with Indian regulations, complying within a month and paying a penalty of 3.45 million rupees. Although Binance has not made any official announcement, reports have revealed it the exchange was planning to re-establish its operations in the country paying a penalty.
Binance already registered with the FIU last May, which will allow it to resume its operations in India.
Binance’s Regulatory Issues
Despite being the largest cryptocurrency exchange, Binance has faced regulatory backlash around the world. The exchange initially expanded its operations across borders without focusing on local licensing, but had to abandon that strategy after a massive regulatory backlash.
Meanwhile, Canada’s anti-money laundering agency also fined Binance $4.38 million in May for violating local anti-money laundering regulations. However, Binance appealed this fine, arguing that it was not targeting Canadian residents. Interestingly, the exchange had already announced its plans to exit the Canadian market in May 2023.
In the United States, Binance’s troubles have been severe, as the global exchange was forced to leave the country after a $4.3 billion settlement with the Department of Justice. The exchange paid another $2.85 billion to the US commodities regulator. Additionally, former CEO Changpeng Zhao pleaded guilty to one count of violating the Bank Secrecy Act and received a four-month prison sentence.
Recently, also the US division of Binance.com, Binance.US lost its money transmitter license in seven states. Additionally, the exchange has suspended new onboarding in Connecticut, Georgia, Ohio, Minnesota and Washington.