Financial Intelligence Unit imposes Rs 18.82 Cr penalty on Binance

The Financial Intelligence Unit (FIU) has fined Binance, the world's largest cryptocurrency exchange, Rs 18.82 crore ($2.25 million) for breaching anti-money laundering rules in India. Despite recently gaining FIU approval for operations in India, Binance was found to have served Indian clients and operated locally without fulfilling legal obligations under the PMLA act. Nine offshore exchanges were similarly warned by FIU for violations. KuCoin, another crypto platform, was also penalized Rs 34.5 lakhs after regulatory approval. This fine follows Binance's $4.4 million penalty from Canada's financial watchdog for similar violations. The industry faces mounting regulatory scrutiny globally. CEO Shivam Thakral of BuyUcoin noted that these developments reflect a trend towards stricter oversight, potentially fostering growth for Web3 businesses amidst India's push to become a $1 trillion digital economy.