Binance has been fined $2.2 million by the Indian Financial Intelligence Unit (FIU) for failing to comply with anti-money laundering requirements as outlined in the Prevention of Money Laundering Act (PMLA) of 2002.
Binance is currently fighting a $4.4 million penalty imposed on them in Canada. The decision was made after conducting a thorough examination of Binance’s activities and in response to the FIU’s directive to enhance its compliance measures.
The penalty is a component of a more extensive endeavor to guarantee that foreign transactions adhere to local legislation. Binance and KuCoin have recently became the first offshore cryptocurrency firms to be registered with FIU-India, which is a significant development in a sector that requires rigorous adherence to anti-money laundering regulations.
The initiative to register commenced in December 2023 when FIU-India sent notifications to nine foreign-based cryptocurrency exchanges, including Binance.
As a reaction, Apple eliminated platforms that did not meet the requirements from its App Store, while the IT Ministry disabled their websites. This action aimed to encourage customers to transition to Indian exchanges that adhere to the regulations.
The exchange is currently challenging a $4.4 million penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (Fintrac).
The regulatory body alleges that Binance neglected to register as a foreign money services business and neglected to disclose significant virtual currency transactions. Binance contends that its Canadian operations were of minimal significance and secondary to its worldwide footprint.
This appeal from Canada is one among several regulatory obstacles that Binance is currently encountering worldwide. Binance reached a settlement of $4.3 billion in the United States for engaging in activities that violated anti-money laundering regulations and penalties.
Binance withdrew from the Canadian market last year, emphasizing the persistent challenges it faces in complying with regulations in different jurisdictions.
Binance’s regulatory concerns are not limited to India and Canada. The company’s decision to withdraw from the Canadian market last year highlights the difficulty it faces in complying with various regulatory demands.
These concerns highlight the significance of international cryptocurrency exchanges complying with local regulations in order to prevent substantial penalties and operational limitations.
