India’s Financial Institutions Authority (FIU) has revealed that Binance, a registered cryptocurrency exchange platform, violated three sections of the Prevention of Money Laundering Act, 2002. The exchange is currently facing a trial in Nigeria for money laundering and tax evasion charges. In Nigeria, the Economic and Financial Crimes Commission accused Binance of laundering over $35m through its platform. The Federal Inland Revenue Service has also filed a separate case of tax evasion.

Binance had registered with the FIU in May, seeking to resume operations in India after being issued a show-cause notice by the financial watchdog in December 2023. However, the exchange failed to comply with the regulations, leading to a hefty fine. The FIU found that the charges against Binance were substantiated and imposed a total penalty of Rs. 18,82,000.

The crypto exchange platform shut down naira-dollar services after the Federal Government accused it of manipulating foreign exchange rates. This led to a crackdown and stricter oversight of crypto trading platforms operating in the country. On February 28, Nigerian authorities detained two senior executives from Binance, Nadeem Anjarwalla and Tigran Gambaryan, following a meeting in Nigeria. The Federal High Court recently dismissed tax evasion charges against the executives, but the Federal Inland Revenue Service has filed amended charges, naming Binance as the sole defendant.