India's Financial Intelligence Unit (FIU) has fined Binance and KuCoin about $2.25 million (about 188 million Rupees) and 3.4 million Rupees, respectively in fines for not obeying the country's Anti-Money Laundering (AML) laws.
The FIU maintained that the exchanges rendered their services in the country without the proper registration, did not obtain a Virtual Asset Service Provider (VASP) license, and did not adhere to the stipulated AML conditions.
India Pushing For Greater Control Of Crypto-Related Activities Within Its Axis
Like other countries, India has been seeking firmer regulatory control of the cryptocurrency space within its borders, evidenced by the FIU actions against some foreign-based crypto exchanges guilty of noncompliance to regulatory guidelines in the past few months.
Notably, the FIU's push to tightly regulate crypto activities in the South Asian nation resulted in some exchanges like OKX vacating the country following accusations of illegal operations. On the other hand, Binance, KuCoin, and some other trading platforms are working on earning Indian market returns to ensure they remain relevant in the face of stringent rules.
Binance's Escapades In Attaining Regulatory Clarity In India
Among the crypto exchanges working to earn full market permission in India, Binance, and KuCoin seem to top the list, evidenced by some past events. In one of our old publications, we relayed that Binance had officially bowed to pressure as it intends to pay about $2 million as part of the agreements for a proposed Indian market return.
In addition, last month, Binance and KuCoin made headlines for being among exchanges that are almost rounding up the procedures to resume operations in the Indian axis.
Binance And KuCoin Hit With Fresh Fines
Considering the sequence of events highlighted in this insight, it becomes pertinent to question the new fines. The only explanation is that the attempts to align with the FIU were futile or could not meet a deadline set by India's FIU.
In summary, Binance is taking hits from several regulatory agencies worldwide, with the FIU being the most recent of its attackers. Earlier in May, the exchange was fined $4.4 million by Canada's financial regulatory agency, FINTRAC, for which Binance recently appealed in Canada Federal Court.
