Binance, a renowned cryptocurrency exchange, has been fined approximately $2.2 million (Rs. 18,82,00,000) for providing services to Indian clients without adhering to the nation’s anti-money laundering rules.
India’s anti-money laundering unit announced this in a statement dated June 19.
The development comes amid the firm’s ongoing court trial in Nigeria. Nadeem Anjarwalla, Binance’s regional manager for Africa, and Tigran Gambaryan, Binance’s head of financial crime compliance, were detained by Nigerian authorities on February 28. Both executives, alongside Binance, were charged by Nigeria’s government for tax evasion and money laundering.
In the latest development in India, the director of the country’s financial intelligence unit (FIU-IND) stated that the charges against Binance were substantiated based on the material available on record.
“Consequently, due to Binance’s ongoing provision of services to Indian clients and operations within India without adhering to its statutory obligations under the PMLA, a notice dated December 28, 2023, was issued to Binance pursuant to Section 13 of the Act, compelling Binance to demonstrate why appropriate action should not be undertaken against it for its dereliction of duties under the Act, despite its status as a Reporting Entity owing to its operations as a Virtual Digital Asset Service Provider (VDA SP),” the statement reads.
“After considering the written and oral submissions of Binance, Director FIU-IND, based on the material available on record, found that the charges against Binance were substantiated. Consequently, the Director FIU-IND, via an order dated June 19, 2024, in exercise of powers under Section 13 PMLA, imposed a total penalty of Rs.18,82,00,000 (Rupees Eighteen Crore Eighty-Two Lakh Only) on Binance with reference to the following violations committed by Binance.”
Responding to the report, Binance said it is aware of the FIU’s order and is reviewing it to determine the next steps.
“We are grateful to have the opportunity to continue our mission to serve the vibrant Indian crypto community,” the exchange said. “We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future.”
Binance also said it remains dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.
