India’s Financial Intelligence Unit (FIU) has fined the world’s largest crypto exchange Binance $2.2 million for failing to comply with anti-money laundering rules.

The FIU reviewed Binance’s operations and concluded that the exchange operated in the country without complying with the Prevention of Money Laundering Act (PMLA) 2022. The regulator required Binance to improve its protocols in accordance with the PMLA and the 2005 Accounting Regulations, which are aimed at combating terrorist financing.

In December 2023, the financial regulator issued a notice that Binance, along with other offshore crypto exchanges, was operating in India without registration. In May, Binance registered with the agency to resume operations in the country. Although Binance has already registered with the FIU, the marketplace will only be able to resume operations in India after paying a $2.2 million fine for previous non-compliance.

Binance also has disagreements with the Canadian regulator. Exchange
protested a $6 million fine sought by the Financial Transactions and Reporting Analysis Center of Canada (FINTRAC). In May, the agency announced that Binance had failed to register as a foreign currency services company and had failed to provide information on large crypto asset transactions valued at more than $10,000. Binance explained that it sought to develop operations in Canada, but this was not successful. , as the company left the Canadian market due to stricter regulatory requirements.

Meanwhile, former Binance CEO Changpeng Zhao began serving a four-month prison sentence in the US on June 1 for Know Your Customer (KYC) violations and anti-money laundering (AML) compliance.