Binance Hit with $2.25 Million Fine by India for AML Violations (2024)

FAQs

Binance Hit with $2.25 Million Fine by India for AML Violations? ›

India's Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on Binance, the world's largest cryptocurrency exchange, for operating in the country in violation of local anti-money laundering (AML) regulations.

India Fines Binance $2.25 Million for AML Violations, Other Countries Follow Suit. India's Financial Intelligence Unit (FIU) has fined crypto exchange Binance 188.2 million rupees ($2.25 million) for violating the country's Anti-Money Laundering (AML) rules while providing services to Indian clients.

Binance filed for FIU registration in April and was fined ₹18.82 Crore while OKX decided to discontinue its services in India. Even though Binance URL is now accessible, the app is yet to reappear on Play store and App Store.

What does AML in crypto mean? AML for cryptocurrencies refers to the laws, rules, and policies put in place to prevent criminals from turning unlawfully obtained cryptocurrency into cash.

Binance offers a relatively secure, versatile way to invest in and trade cryptocurrencies. The platform could be overwhelming for both beginners and experienced traders.

Yes. Binance US is required to report to the IRS under existing guidance and issues US users with more than $600 in income with a 1099 form.

10 lakhs or its equivalent in foreign currency (excluding individual transactions below Rs. 50,000/- in the reporting) where such series of transactions have taken place within a month and the aggregate value of such transactions exceeds Rs. 10 lakhs. c) Counterfeit currency transactions.

Binance is not banned in India and Indian citizen buy cryptocurrency through any Indian Cryptocurrency exchanges and Wazirx Exchange is India's most trust and reliable cryptocurrency exchange.

Select Payment Method: Choose the payment method for withdrawal (usually bank transfer). Enter the required bank account details, including the account number, routing number, and recipient name.

You can fund your account with a debit card or electronic bank transfer when you've found an exchange. Once your account is funded, enter the exchange's trading platform. Enter Binance Coin's ticker symbol—BNB—and the amount you want to invest, such as INR 500.

How to detect money laundering in cryptocurrency? ›

An irregular or unusual pattern of transactions. Sending virtual assets to jurisdictions with weak AML regulations or measures to counter the financing of terrorism. Receiving or sending cryptocurrency to or from darknet marketplaces. The use of heightened anonymity features.

Anti Money Laundering (AML), also known as anti-money laundering, is the execution of transactions to eventually convert illegally obtained money into legal money. Although you as a company stick to the rules, this does not mean that your partners and business associates adhere to the same AML compliance laws as you.

If you believe you have been scammed on Binance, you should contact their customer support team immediately and provide them with as much information as possible about the scam. They may be able to investigate the situation and potentially refund your funds if they determine that you were indeed scammed.

In Nigeria, the Economic and Financial Crimes Commission accused Binance of laundering over $35m through its platform. The exchange is also facing a separate case of tax evasion filed by the Federal Inland Revenue Service.

No cryptocurrency exchange can guarantee 100% safety, but Binance has implemented several measures to protect users' assets, such as a $1 billion insurance fund, comprehensive account security and asset audits.

Imprisonment: Money laundering carries a penalty of imprisonment ranging from three to seven years under section 4 of the PMLA. In cases falling under the Narcotic Drugs and Psychotropic Substances Act 1985, the maximum sentence can extend to 10 years.

India is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Under the PMLA, Section 4 criminalises the offence of money laundering to any property derived or obtained by any person as a result of an offence (“proceeds of crime”). The predicate offences are all listed in the Schedule to the PMLA.

Anyone convicted of money laundering could be sentenced to up to 20 years of incarceration and fines of up to $500,000 or twice the value of the property that was involved in the transaction, whichever amount is greater. Those who are involved with money laundering offenses can also face other related criminal charges.