The Director of the Financial Intelligence Unit of India (FIU-India) has determined that Binance operated in India without fulfilling its statutory obligations under the Prevention of Money Laundering Act (PMLA). This decision follows a thorough review of Binance’s submissions. As a result, Binance must enhance its compliance protocols in line with the PMLA and its 2005 rules, which are designed to prevent money laundering and terrorist financing.
This action against Binance is part of a broader initiative to ensure international crypto exchanges comply with local regulations. Recently, Binance and KuCoin were recognized as the first offshore crypto entities registered with FIU-India, marking a crucial step in meeting India’s stringent anti-money laundering requirements. The push for registration intensified after FIU-India issued notices in December 2023 to nine offshore crypto exchanges, including Binance. Concurrently, Apple removed non-compliant platforms from its App Store, and the IT Ministry blocked their websites, directing users to compliant Indian exchanges.
Simultaneously, Binance is appealing against a $6 million fine in Canada imposed by the Financial Transactions and Reports Analysis Centre of Canada (Fintrac). The agency cited failures in registering as a foreign money services business and not reporting large virtual currency transactions. Binance contends that its operations in Canada were minimal and incidental to its global presence. This appeal is part of a series of regulatory challenges for Binance, which also includes a significant $4.3 billion settlement in the United States over anti-money laundering and sanctions violations. Last year, Binance decided to exit the Canadian market, highlighting its ongoing regulatory hurdles across various regions.
