PayPal Payment Gateway: India Fines Coins $2.2 Million for Failing to Comply with Money Laundering Prevention Rules

India's anti-money laundering agency announced on Thursday that it had fined cryptocurrency exchange Binance more than INR188 million ($2.2 million) for failing to comply with the Prevention of Money Laundering Act (PMLA) by offering its services to Indian customers.

In December last year, the Financial Intelligence Unit (FIU) issued compliance notices to nine unregistered cryptocurrency exchanges, including Binance, Kucoin, and Huobi, alleging that they were "operating illegally" in India and allegedly violating the PMLA.Subsequently, the apps of these exchanges were removed from the Indian app store. The apps of these exchanges were subsequently removed from the Indian app shop.

However, in May this year, Binance and KuCoin were allowed to return to the Indian market after paying a fine and attending a hearing with Indian authorities. This means Binance must now comply with local regulations, including the PMLA and the Virtual Digital Asset (VDA) tax framework.

In its announcement on 19 June, the FIU mentioned that "after evaluating Binance's written and oral representations, and based on the available information, the principals of the FIU found the allegations against Binance to be substantiated."

As a result, the head of the FIU imposed fines totalling approximately $2.2 million on Binance and issued specific instructions to ensure compliance with the relevant obligations.

Dilip Chenoy, President, Web3 Association of India, said, "We urge all industry players to strictly comply with the laws related to Anti-Money Laundering (AML) and Counter Terrorist Financing (CFT)."

As of this writing, Binance has not responded to media requests for comment.

This article describes in detail the $2.2 million fine imposed by Indian authorities on Binance for failing to comply with money laundering prevention regulations. For more on the FIU's order fining Binance $2.2 million, see other related articles on Script House!

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