Binance Pays USD 2.25 Million Fine for PMLA Violations in India

The ban on international crypto exchange Binance in India has been lifted. Along with registering with the Financial Intelligence Unit (FIU) in the country, Binance has also paid a fine of $22.5 lakh. This fine was imposed in June due to the exchange’s violation of the Prevention of Money Laundering Act (PMLA).

Access to the exchange’s website has started for Binance users in the country. Binance This is the 19th international license for. It has licenses for business in Sweden, Dubai, Kazakhstan and France. Richard Teng, CEO of Binance, said that the exchange recognizes the potential in the country’s Virtual Digital Assets (VDA) market. He said, “Our registration with FIU is an important milestone in the exchange’s journey. This will enable us to offer our services to Indian users.”

Binance’s registration with the FIU could have been completed in May. However, during the investigation of this exchange, the authorities found that it did not follow the PMLA law. Recently Binance received a notice to pay GST of Rs 772 crore in the country. This notice was issued by the General Directorate of GST Intelligence (DGGI). The reason for this notice is a fee collected from traders in the country. The amount of this fee is approximately Rs 4,000 crore and it was transferred to the company abroad. DGGI’s Ahmedabad zonal unit had detected a glitch in the functioning of Binance.

This exchange had told in a blog post in June that it has not opened its headquarters and for this it is looking for a location. The central government has said that it has no plans to regulate the crypto segment. Rules have been made for this segment in the European Union (EU) and UAE. In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary had said that there is no proposal to make a law for the purpose of regulating the purchase and sale of virtual assets in the near future. MP GM Harish Balayogi had asked whether the government has any proposal to bring rules to regulate the crypto segment.