Binance, the leading cryptocurrency exchange in the world, is currently grappling with rising regulatory hurdles in various countries, including India. The Financial Intelligence Unit in India recently slapped Binance with a hefty fine of 188.2 million Indian Rupees, equivalent to approximately $2.2 million, for failing to comply with the country’s Anti-Money Laundering regulations. According to the regulator, Binance was found guilty of operating in India without meeting the necessary statutory obligations, thereby infringing upon three specific provisions of the Prevention of Money Laundering Act.
Challenges in Canada
The difficulties faced by Binance extend beyond India, as the exchange is currently contesting a $4.4 million penalty imposed by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). In May, FINTRAC penalized Binance for violating AML and Counter-Terrorism Financing regulations by failing to register as a foreign money service business and failing to report transactions exceeding $10,000. Binance has argued that it does not directly offer services in Canada, attributing its presence in the market to its global operations. Despite its efforts to establish operations in Canada, Binance claims that they did not come to fruition.
Issues with Binance.US
Furthermore, Binance’s troubles have reached the United States, where its subsidiary, Binance.US, had its money transmitter license revoked in North Dakota. The state’s financial regulator cited Binance’s non-compliance with local regulations as grounds for revoking the license. Additionally, the regulatory authority pointed to Changpeng Zhao’s federal conviction as another reason for halting the firm’s regional operations. Zhao, Binance’s co-founder and the beneficiary owner of its US subsidiary, is currently serving a four-month jail sentence in the United States for breaching local financial regulations.
Binance, the largest crypto exchange globally, is facing a myriad of regulatory challenges in different jurisdictions. From India to Canada to the United States, the exchange is coming under increasing scrutiny for its alleged violations of Anti-Money Laundering and Counter-Terrorism Financing regulations. As Binance navigates through these turbulent waters, it remains to be seen how the exchange will address and overcome these regulatory hurdles to maintain its position in the cryptocurrency market.
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