Binance fined $2.25 million for AML violations in India

India's Financial Intelligence Unit (FIU) has imposed a hefty fine of $2.25 million on Binance, the world's largest cryptocurrency exchange, for violating local anti-money laundering regulations. In India, virtual digital asset service providers, including crypto exchanges, are required to register with the FIU as reporting entities and comply with strict anti-money laundering measures.

Binance, in response to the fine, refrained from immediate comments. Earlier in May, the exchange had taken steps to register with the FIU to recommence its operations in India following show-cause notices from the regulatory body. The FIU had also urged the ministry of electronics and information technology to block online access to nine offshore exchanges that were found to be flouting local regulations.

Another crypto exchange, KuCoin, was penalized with 3.45 million Indian rupees after completing its registration with the FIU in March. Furthermore, Canada's anti-money laundering agency penalized Binance with $4.38 million in May for failing to comply with anti-money laundering regulations.

Changpeng Zhao, the former CEO of Binance, was sentenced to four months in prison by US District Judge Richard Jones in Seattle in May for confessing to breaching US money laundering laws.

The cryptocurrency industry is facing increasing scrutiny globally, with regulatory bodies cracking down on exchanges that do not adhere to anti-money laundering regulations. These fines and penalties serve as a reminder to all crypto exchanges to prioritize compliance with financial laws to ensure a secure and transparent ecosystem for digital asset trading.