The world's largest cryptocurrency exchange, Binance, has been fined $2.25 million by India's Financial Intelligence Unit (FIU) for violating the country's money laundering law.
This comes amid ongoing legal battles in Nigeria, where the exchange's officials are facing charges of money laundering and foreign exchange contravention.
In India, virtual digital asset service providers like crypto exchanges are required to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
Binance had registered with the FIU in May as it sought to resume operations in the country after the watchdog issued show-cause notices to nine offshore exchanges operating in violation of local rules.
However, the Indian Authority found that Binance had violated three sections of the country's Prevention of Money Laundering Act (PMLA), 2002.
The FIU imposed a total penalty of Rs. 18,82,00,000 ($2.25 million) on Binance for its failure to comply with its statutory obligations under the PMLA.
In Nigeria, the cryptocurrency exchange is facing accusations of influencing foreign exchange (FX) rates, leading to stricter oversight of crypto trading platforms.
Two senior Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, were detained by Nigerian authorities on February 28.
Although the Federal High Court discharged Gambaryan and Anjarwalla from a tax evasion case against Binance, the Federal Inland Revenue Service (FIRS) has filed amendment charges against them.
The Economic and Financial Crimes Commission (EFCC) is also separately prosecuting Binance and its executives over alleged money laundering and foreign exchange contravention.
The ongoing legal battles in India and Nigeria highlight the challenges faced by cryptocurrency exchanges in navigating complex regulatory environments and complying with anti-money laundering laws.
