Indian authorities request access to 9 exchanges including Binance to be blocked for violating anti-money laundering laws
Binance and others request URL blocking
On the 28th, the Financial Intelligence Bureau under the Indian Ministry of Finance asked the Ministry of Electronics and Information Technology to cut off access (block the URLs) to nine overseas crypto asset (virtual currency) exchanges, including Binance.
Nine exchanges – Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex – have been accused of operating illegally without complying with the provisions of India’s Prevention of Money Laundering Act (PML Act). The request was made to block access to the official website.
The Financial Intelligence Bureau of India explained that even if a company does not have a physical presence, such as a branch office, if it is engaged in activities that provide services to Indian citizens, it is required to fulfill its obligations under the Anti-Money Laundering Act.
Service providers operating in India and engaged in activities such as virtual currency and fiat currency exchange, virtual currency transfer, virtual currency storage and management must register with the Financial Intelligence Authority of India and comply with various regulations under the Anti-Money Laundering Act. Must comply with obligations.
He also went on to say that under the Anti-Money Laundering Act, there are obligations such as reporting to the Financial Intelligence Bureau and maintaining records.
India’s policy toward virtual currencies has been changing over and over again, but it has now changed its direction to bring its regulations in line with the international community. In September, the two sides plan to discuss policy directions in response to the G20’s support for a supervisory framework for virtual currencies.
connection: Indian government to decide on policy direction regarding virtual currency following G20 agreement
Binance settles with US Treasury and CFTC
In November, Binance’s Changpeng Zhao (CZ) resigned as CEO of the company after accepting a plea deal and admitting that he had violated US law. He entered into a settlement with the U.S. Treasury Department, admitting that he violated anti-money laundering and sanctions rules.
connection: US District Court accepts guilty plea from former Binance CZ CEO
The global version of Binance also reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) this month. Binance will have to pay a fine of approximately 200 billion yen, and Mr. CZ will have to pay a fine of approximately 21.4 billion yen.
The CFTC had alleged that Binance circumvented U.S. regulations and provided services to U.S. users. As part of the settlement, Binance and CZ have committed to strengthening their corporate governance structures.
connection: Overseas version of Binance settles with CFTC, fines and strengthens compliance system
What is Binance?
Operates a major virtual currency exchange with a large number of stocks, trading volumes, and registered users. The company also engages in a wide range of other businesses, including venture capital activities, providing educational content, and philanthropic activities. In November 2022, the company announced its entry into the Japanese market.
Virtual currency glossary
connection: Binance expands into Japan What is “Binance Japan (tentative name)�Thorough explanation of expectations and impacts
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