Binance, one of the world’s largest cryptocurrency exchanges, has been fined INR 188.2 million ($2.25 million) by India’s financial watchdog for violating the country’s anti-money laundering (AML) regulations.

Financial Intelligence Unit (FIU) The sentencing order was issued on Wednesday Under the Money Laundering Prevention Law. According to the regulator, a notice was sent to Binance in December 2023, asking the exchange to explain why it had not taken appropriate action against it.

The notice likely relates to Binance’s previous services to local clients and operations within India without registering under the country’s anti-money laundering regulations. In addition to the fine, the FIU also provided Binance with specific instructions to ensure strict compliance with anti-money laundering laws in India going forward.

This development reportedly comes from Binance Seeking to re-enter the Indian market After being banned by Indian regulators in January. The stock exchange did not immediately respond to requests for comment on the matter.

Binance is in trouble

The FIU’s action highlights the increasing scrutiny that cryptocurrency exchanges face from regulators around the world, particularly regarding anti-money laundering and know-your-customer (KYC) compliance. Binance in particular is facing a major problem in its dealings with regulators around the world.

Such as reading and writing Reported in late AprilUS prosecutors are seeking a 36-month prison sentence for Changpeng Zhao, founder of cryptocurrency exchange Binance. Zhao is not the only Binance official currently facing trouble.

After Binance It has suspended its services in Nigeria At the beginning of March two company representatives They were arrested in the countrywhich the company followed Issuing a statement demanding their release.

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