Binance, the world’s largest crypto exchange by trading volume, is facing escalating regulatory challenges in multiple jurisdictions including India, Canada and the United States.
India imposes a fine of $2.2 million
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.
According to the announcement, Binance was accused of operating in India without adhering to legal obligations, violating three provisions of the Prevention of Money Laundering Act (PMLA).
The regulator thus stated:
“After reviewing Binance’s written and oral comments, the Director of FIU-IND concluded, based on the available material, that the charges against Binance were justified.”
Last December, the FIU sent Binance a notice asking the exchange to justify why enforcement action should not be taken against Binance. The fine was imposed after Binance failed to convince the regulator to waive the fines.
Binance is appealing a $4.4 million fine in Canada
Binance is Reportedly contesting a $4.4 million fine imposed by the Canadian Financial Transactions and Reports Analysis Center (FINTRAC).
In May FINTRAC punished Binance for violating AML and Counter-Terrorism Financing (CFT) regulations. The regulator cited Binance’s inability to register as a foreign money services company and report transactions over $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 have not materialized.
Binance.US license suspended in North Dakota
Binance.US, the American subsidiary of the global exchange giant, had a money transmitter license in North Dakota withdrawn by the state financial regulator on June 17.
The controller declared that the exchange did not comply with local regulations and cited Changpeng Zhao’s federal conviction as an additional reason to shut down the company’s regional operations.
Zhao is the co-founder of Binance and the beneficial owner of the US subsidiary. He is serving a four-month prison sentence in the United States, where he was convicted of violating local financial regulations.