India’s Financial Intelligence Unit (FIU) has fined Binance 188.2 million rupees ($2.25 million) as the crypto exchange firm battles for its reputation in an ongoing court trial in Nigeria.
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.
But in May, Binance had registered with the FIU as the exchange 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, a document titled ‘Order in original No. 10/DIR/FIU-IND/2024 in the matter of Binance u/s Section 13 dated June 19, India’s FIU said the fine was for violating its money laundering law.
The Indian authority said that Binance, as a registered entity in the country, had violated three sections of the country’s Prevention of Money Laundering Act (PMLA), 2002.
Meanwhile, this is coming as Nigeria’s Federal Inland Revenue Service (FIRS) has filed a case of tax evasion against the company.
The Economic and Financial Crimes Commission (EFCC) has also accused it of laundering more than $35 million through its platform.
Besides, the Federal Government recently accused the cryptocurrency exchange of influencing foreign exchange (FX) rates, leading to stricter oversight of crypto trading platforms.
In February, it detained two senior Binance executives: Nadeem Anjarwalla, a 37-year-old British-Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who is the head of financial crime compliance at Binance.
Following the Federal Government’s ban on cryptocurrency channels and as part of a campaign against currency speculation, the Binance executives visited Nigeria for a meeting.
Although the Federal High Court last week discharged Gambaryan and fleeing Anjarwalla from the FIRS tax evasion case against Binance, the agency has filed amendment charges against them with Binance as the sole defendant.
