Binance has been fined $2.25 million by the Financial Intelligence Unit (FIU) of India. The exchange is accused by the FIU of breaking the country’s Prevention of Money Laundering Act.
In December 2023, the FIU sent a notice to the exchange, asking it to “demonstrate why appropriate action should not be undertaken.” The FIU accused the firm of offering services to Indian clients without registering with India’s anti-money laundering (AML) regulations.
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Binance and eight other crypto exchanges faced a ban from offering their services in India, earlier this year. The other exchanges include Kucoin, Huobi, Kraken, Gate.io, Bitstamp, MEXC Global, Bittrex, and Bitfenix. Kucoin has since registered with India’s regulators and is no longer banned in the country.
Will Binance re-enter India after paying the fine?
Source: Binance
India is one of the largest crypto markets in the world. This makes the country an attractive business destination for any crypto exchange. Binance has expressed the desire to re-enter the Indian market and reform its South Asian business ventures.
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There is a possibility that the exchange will restart offering its services to Indian clients after resolving the legal issues. The exchange will have to register with the country’s anti-money laundering regulations. Before its ban, Binance was responsible for 90% of India’s crypto holdings. The exchange’s non-compliance with tax laws allowed investors to get away without paying the 1% tax deducted at source (TDS).
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India is a large crypto market with its own share of hurdles. The Indian government has slapped high taxes on cryptocurrency investors. This has been a serious obstacle to crypto expansion in the country.