Binance, the leading cryptocurrency exchange in the world, is currently grappling with escalating regulatory issues in various countries, including India, Canada, and the United States. In a recent development, India’s Financial Intelligence Unit (FIU) imposed a hefty fine of 188.2 million Indian Rupees (approximately $2.2 million) on Binance for failing to comply with the country’s Anti-Money Laundering (AML) regulations. The FIU accused Binance of operating in India without fulfilling its statutory obligations, thereby violating three provisions of the Prevention of Money Laundering Act (PMLA).
Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC)
Moving on to Canada, Binance is currently contesting a substantial $4.4 million fine imposed by the country’s Financial Transactions and Reports Analysis Centre (FINTRAC) for breaching AML and Counter-Terrorism Financing (CFT) regulations. The regulator penalized Binance for its failure to register as a foreign money service business and report transactions exceeding $10,000. Despite Binance’s argument that it does not directly provide services in Canada and attributing its presence in the market to global operations, FINTRAC stood firm on its decision to penalize the exchange.
United States Regulatory Hurdles
In the United States, Binance.US, the American subsidiary of the global exchange giant, faced a setback when its license as a money transmitter in North Dakota was revoked by the state’s financial regulator on June 17. The regulator cited Binance’s non-compliance with local regulations and highlighted Changpeng Zhao’s federal conviction as additional grounds for halting the firm’s operations in the region. Zhao, the co-founder of Binance and the beneficial owner of its US subsidiary, is currently serving a four-month jail sentence in the United States for breaching local financial regulations.
As Binance encounters mounting regulatory challenges across different jurisdictions, the exchange is grappling with fines, licensing issues, and legal hurdles that threaten its operations in key markets. With authorities cracking down on compliance shortcomings and violations, Binance faces an uphill battle in navigating the complex landscape of cryptocurrency regulations globally. It remains to be seen how Binance will address these regulatory hurdles and safeguard its position as a leading player in the digital asset industry.