Binance's global operations under fire as fines and suspensions mount
India imposes $2.2 Million fine
On June 19, India’s Financial Intelligence Unit (FIU) fined Binance 188.2 million Indian Rupees (approximately $2.2 million) for non-compliance with the country’s Anti-Money Laundering (AML) regulations.
Per the announcement, Binance was charged with operating in India without adhering to the statutory obligations, violating three provisions of the Prevention of Money Laundering Act (PMLA).
So, the regulator stated:
“After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated.”
Last December, the FIU issued a notice to Binance requesting the exchange justify why enforcement actions should not be taken against it. The fine was imposed after Binance failed to convince the regulator to waive the penalties.
Binance appeals $4.4 million fine in Canada
Binance is reportedly contesting a $4.4 million fine imposed by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).
In May, FINTRAC penalized Binance for breaching AML and Counter-Terrorism Financing (CFT) regulations. The regulator cited Binance’s failure to register as a foreign money service business and to report transactions exceeding $10,000.
In its appeal, Binance argued that it does not directly offer services in Canada. Instead, it attributed its presence in the Canadian market to its global operations. Binance also noted that its efforts to establish operations in Canada did not materialize.
Binance.US license suspended in North Dakota
Binance.US, the United States subsidiary of the global exchange behemoth, license as a money transmitter in North Dakota was revoked by the state’s financial regulator on June 17.
The regulator stated that the exchange failed to comply with local regulations and cited Changpeng Zhao‘s federal conviction as a further reason to stop the firm’s regional operations.
Zhao is Binance’s co-founder and the beneficiary owner of the US subsidiary. He is serving a four-month jail sentence in the United States, where he was convicted of breaching local financial regulations.
