Rs 18.82 cr fine imposed on crypto exchange Binance

New Delhi, June 20

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The Financial Intelligence Unit (FIU) has slapped a penalty of Rs 18.82 crore on the world’s largest crypto exchange Binance for alleged contravention of the country’s anti-money laundering law.

The federal agency issued an order on Thursday charging the exchange with “dereliction of duty” being a Virtual Digital Asset Service Provider (VDASP) category of reporting entity under the Prevention of Money Laundering Act (PMLA).

India’s anti-money laundering law stipulates VDASPs to get registered as a reporting entity with the FIU and share timely suspicious transaction reports with it, which help the FIU to keep a check on financial crimes.

The summary order accessed by PTI said Binance was first issued a notice on December 28, 2023 as it operated in India and provided services to Indian clients.

Binance had earlier not registered as a reporting entity with the FIU, as required under the PMLA. It did it in May after the Union government banned its URLs in India and was issued a show cause notice by the FIU, a senior officer said.