Binance, the leading cryptocurrency exchange in the world, has recently been facing regulatory challenges in various countries, including India. The Financial Intelligence Unit (FIU) of India imposed a hefty fine of 188.2 million Indian Rupees on Binance for non-compliance with Anti-Money Laundering (AML) regulations. This fine amounts to approximately $2.2 million and was a result of Binance operating in India without adhering to the required statutory obligations. The FIU found Binance guilty of violating three provisions of the Prevention of Money Laundering Act (PMLA) after carefully considering the evidence presented by both parties.
In addition to the regulatory challenges in India, Binance is also contesting a $4.4 million fine imposed by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). The penalty was issued due to Binance’s failure to comply with AML and Counter-Terrorism Financing (CFT) regulations. According to FINTRAC, Binance did not register as a foreign money service business and failed to report transactions exceeding $10,000. Binance’s defense revolves around the argument that it does not directly offer services in Canada and that its presence in the Canadian market is a result of its global operations, which have not materialized in the country.
The regulatory challenges for Binance do not stop there. Binance.US, the United States subsidiary of the global exchange, had its license as a money transmitter in North Dakota revoked by the state’s financial regulator. This decision was made on June 17, citing Binance’s failure to comply with local regulations. Furthermore, the regulator referenced Changpeng Zhao’s federal conviction as a contributing factor to ceasing Binance.US’s regional operations. Zhao, the co-founder of Binance and the beneficiary owner of the US subsidiary, is currently serving a four-month jail sentence in the United States for breaching local financial regulations.
Binance is facing escalating regulatory challenges across multiple jurisdictions, including India, Canada, and the United States. These challenges have resulted in hefty fines, revoked licenses, and legal issues for the cryptocurrency exchange. As Binance navigates through these regulatory obstacles, it will have to carefully address compliance issues and work towards resolving regulatory concerns to ensure its continued operations globally.
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