Binance, recognized as the world’s largest cryptocurrency exchange, is in trouble with Indian law. The nation’s anti-money laundering watchdog has fined it $2.2 billion for failing to comply with regulations while catering to its clientele.

Binance operates as a Virtual Digital Asset Service Provider (VDASP), which categorizes it as a Reporting Entity under the Prevention of Money Laundering Act (PMLA), 2002. Despite this designation, the crypto giant has been providing services within Indian borders without fulfilling its regulatory responsibilities.

Related: Does Binance Guilty Plea Show What Crypto’s Really About?

On December 28, an official notice was served to Binance demanding an explanation for its non-compliance. The notice essentially challenged the exchange to justify why punitive measures should not be enforced against its operations.

After a thorough review of Binance’s written and oral defenses, the Director of the Financial Intelligence Unit (FIU-IND) justified the charges based on ample evidence. This led to the imposition of a penalty under the powers granted by Section 13 of the PMLA.

The specifics of the contraventions include breaches of multiple sections of the PMLA and its corresponding rules, particularly concerning the obligations to maintain proper records and reports that aid in preventing money laundering and terrorist financing.

Moreover, Binance has been instructed to adhere strictly to Chapter IV of the PMLA, along with the PMLA Maintenance of Record Rules established in 2005. Just last week, the Orissa High Court decreed that cryptocurrency transactions are not illegal under Indian law.

This ruling came from a case involving a fraudulent Ponzi scheme, where Justice Sasikanta Mishra said that cryptocurrencies are neither recognized as money under the Prize Chits and Money Circulation Schemes (Banning) Act nor as deposits under the Odisha Protection of Interests of Depositors Act. Consequently, mere dealings in cryptocurrencies were declared not to constitute offenses under these statutes.

Jai Hamid

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed