Details Inside: Binance fined Rs 18.82 crore by FIU

The Financial Intelligence Unit (FIU) has imposed a fine of Rs 18.82 crore on Binance, the world’s largest cryptocurrency exchange, for operating in India without adhering to domestic anti-money laundering regulations. Binance had registered with the FIU in May, following a show-cause notice issued by the financial watchdog in December 2023. This notice was also sent to eight other offshore exchanges operating in violation of local rules.

A notification from the FIU stated, “After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated.” The notification further added that Binance must ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002, along with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 to prevent money laundering and combat the financing of terrorism.


Binance was barred from operating in India in December for not complying with local regulations, as part of the FIU’s crackdown on unregistered offshore crypto exchanges. India mandates that virtual digital asset service providers, like crypto exchanges, register with the FIU and comply with the country’s anti-money laundering rules.

While Binance has now registered with the FIU, it can only resume operations after paying the penalty for previous non-compliance, which has been set at Rs 18.82 crore. The FIU had issued show-cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance with local rules and had requested the Ministry of Electronics and Information Technology to block online access to these exchanges.