India’s Financial Watchdog Fines Binance $2.25 Million

The Financial Intelligence Unit of India has directed Binance to pay $2.25 million in fine. As per the report, the regulatory agency has charged the trading platform for violating the anti-money laundering laws.

On this account, the FIA has directed the firm to issue a fine of 188.2 million INR or $2.25 million as penalty. The fine was finalized after a written review and verbal statements issued by the Binance director.

FIA Fines Binance for Violating Money Laundering Act

FIA issued the fine on Thursday noting that the penalty was applicable on the trading platform on account of multiple violations of the Money Laundering Act (PMLA) of 2002. Binance is operating as a Virtual Digital Asset Services Provider in India in accordance with Section 2 of PMLA.

It means that as a regulated firm, Binance is bound to record transaction records and ensure robust AML measures.

However, FIU has indicated that Binance does not publish a detailed transaction record. Therefore, Indian authorities have issued a show-cause notice and various offshore exchanges. By the law, the trading platforms are now barred from operating in India as a regulated entity. However, Binance received regulatory approval from FIU in May. However, the firm was mandated to pay a penalty.

FIU to Take Regulatory Action Against Crypto Trading Firms

FIU declared that as per the on-record data Binance is considering the written or verbal request from the Binance director. At the same time, Binance has reviewed a FIU notification and decided to stick with the Indian operations. As per a spokesperson, Binance is working in tandem with FIU and it is enthusiastic about reopening services in India.

The spokesperson further added that the firm is looking to ensure transparency, cooperation, and regulatory implementation. Binance is also facing trouble in Canada. A FINTRAC report suggested in May that the trading platform was looking at a $4.4 million administrative fine as a result of failure to list transactions and register large sums in the form of digital assets.

At the same time, Binance has also filed a lawsuit against the FINTRAC director contesting the allegations regarding non-compliance, AML checks, and financial terrorism participation. In February, Nigerian officials detained two Binance officials on the charges of tax evasion and money laundering allegations.

However, the incident created a massive uproar among market participants about the sudden arrests discouraging goodwill among local business communities and foreign investments.

Binance Collaborates with Turkish Regulators to Solve a Cybersecurity Case

Binance working with Turkish regulators to apprehend a local cybersecurity case. On a different note, Binance is working with regulators from Turkiye in order to catch the hackers involved in the BtcTurk attack.

As per Binance CEO, Richard Teng, the trading platform is working with the Turkish exchange called BTCTurk on a cybersecurity incident involving theft of $5 million in stolen funds. As per BtcTurk, the attack affected active wallet addresses but hackers were only able to siphon a small portion of digital asset funds.

The platform has around 5 million investors. At the same time, Tend posted on X that Binance is going to post updates after the investigation team has completed the first phase. The executive further noted that the cybersecurity team and investigations department of Binance works around the clock to guard user fund, detect threats, and fend off any attacks.

At a time when hack incidents have become a norm among crypto entities, Binance platforms have remained relatively safe against such issues. 

X user ZachXBT applauded the efforts of Binance to work with investigators and assisting its peer firms in shielding against any security incidents. The social media user and blockchain investigator further noted that while Binance is facing regulatory woes at the moment.

The firm is also lending a hand to multiple trading platforms in order to detect, reverse, or retrace cybersecurity incidents. As per Teng, hackers managed to swipe away funds from BtcTurk that were distributed in the form of 10 digital assets.

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