The largest cryptocurrency exchange in the world by volume, Binance, was fined 188.2 million rupees (about $2.25 million) by India’s Financial Intelligence Unit (FIU) for breaking the nation’s anti-money laundering laws. When Binance will start operating again in the nation is yet unknown.

The Indian FIU stopped access to Binance, one of nine international bitcoin exchanges that operated in India, last December. Apple and Google were even compelled by the ruling to take these cryptocurrency exchanges’ local access out of their application stores.

As reporting businesses, bitcoin exchanges in India are required by law to register with the Federal Bureau of Investigation (FBI) and adhere to local anti-money laundering regulations. Tax withholding obligations also apply to cryptocurrency transactions and earnings.

KuCoin, an exchange situated in the Seychelles, was the first of the banned exchanges to abide by Indian rules; it did so within a month and paid a fine of 3.45 million rupees. Despite without releasing any formal statements, stories surfaced indicating that Binance intended to reinstate its activities in the nation by paying a fine.

Binance would be able to restart operations in India because it has registered with the FIU in May of last year.

“We are aware of the FIU’s order and are reviewing it now to determine next steps. We are grateful to have the opportunity to continue our mission to serve the vibrant Indian crypto community. We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities,” said Binance in a statement to the media.

Even though Binance is the biggest cryptocurrency exchange, it has encountered regulatory opposition worldwide. The exchange first grew internationally without paying any attention to local licencing, but a significant regulatory reaction forced it to reverse course.

In May, Binance was fined $4.38 million by the Canadian anti-money laundering agency for breaking local anti-money laundering regulations. Binance, on the other hand, challenged that fine on the grounds that it did not target Canadian citizens with its services. It’s interesting to note that the exchange had already declared its intention to leave the Canadian market in May 2023.

Binance had severe difficulties in the US as the international exchange was compelled to leave the nation following a $4.3 billion deal with the Department of Justice.

The exchange gave the US commodities regulator an extra $2.85 billion. In addition, former CEO Changpeng Zhao was sentenced to four months in prison after entering a guilty plea to one count of breaching the Bank Secrecy Act.

Recently, seven states denied Binance.US, the US division of Binance.com, permission to transfer money. The exchange also resulted in the suspension of new hires in Connecticut, Georgia, Ohio, Minnesota, and Washington.

(Adapted from FinanceMagnates.com)