New Delhi, The Financial Intelligence Unit has imposed a fine of Rs 18.82 crore on Binance, one of the world's largest crypto exchanges, for alleged contravention of the country's anti-money laundering law.
The federal agency issued an order on Thursday accusing the exchange of "dereliction of duty" as a reporting entity, with its operations as a virtual digital asset service provider, under the Prevention of Money Laundering Act (PMLA).
The summary order accessed by said Binance was first served notice in December last year as it was operating in India and providing services to Indian clients.
Binance had not registered as a reporting entity with the FIU, as required by the PMLA. It did so in May this year after the Union government banned its URLs in India and the FIU issued a notice, along with eight other crypto companies, a senior official said.
The exchange has not yet commented on the sanction order.
"After considering Binance's written and oral submissions, the Director of FIU-IND, based on the material available in the record, concluded that the charges against Binance were substantiated.
"Accordingly, the video order of the Director FIU-IND dated June 19, 2024, in exercise of the powers provided under Section 13 of the PMLA, imposed a total fine of Rs 18.82 million on Binance. "," the order said.
The exchange has been charged under Section 12(1) of the PMLA, which requires a reporting entity to maintain a record of all transactions and provide it timely to the FIU.
The order says that the FIU has also issued "specific instructions" to Binance to "ensure diligent compliance with the obligations described in Chapter IV of the PMLA, in conjunction with the PMLA Recordkeeping Rules (PMLA Rules) of 2005 for the prevention of money laundering activities and the fight against the financing of terrorism."
The federal agency issued an order on Thursday accusing the exchange of "dereliction of duty" as a reporting entity, with its operations as a virtual digital asset service provider, under the Prevention of Money Laundering Act (PMLA).
The summary order accessed by said Binance was first served notice in December last year as it was operating in India and providing services to Indian clients.
Binance had not registered as a reporting entity with the FIU, as required by the PMLA. It did so in May this year after the Union government banned its URLs in India and the FIU issued a notice, along with eight other crypto companies, a senior official said.
The exchange has not yet commented on the sanction order.
"After considering Binance's written and oral submissions, the Director of FIU-IND, based on the material available in the record, concluded that the charges against Binance were substantiated.
"Accordingly, the video order of the Director FIU-IND dated June 19, 2024, in exercise of the powers provided under Section 13 of the PMLA, imposed a total fine of Rs 18.82 million on Binance. "," the order said.
The exchange has been charged under Section 12(1) of the PMLA, which requires a reporting entity to maintain a record of all transactions and provide it timely to the FIU.
The order says that the FIU has also issued "specific instructions" to Binance to "ensure diligent compliance with the obligations described in Chapter IV of the PMLA, in conjunction with the PMLA Recordkeeping Rules (PMLA Rules) of 2005 for the prevention of money laundering activities and the fight against the financing of terrorism."
