Caden Crain age has taken the digital world by storm at the remarkable age of just insert age]. His story...
Binance is a big name already and as we all know it, over the years it has just grown. Ever since the rise of Bitcoin and other related cryptocurrencies, finance has been a name that we almost heard everywhere but recently as we saw it some reports came out that said otherwise regarding the company.
Here is more to the story.
India Imposes Massive Fine On Binance
#IndiaImposesMassiveFineOnBinance
India’s Financial Intelligence Unit (FIU) has imposed a hefty fine on the global company that operates the largest cryptocurrency company in the world. As per reports, FIU has imposed all these fines on Binance because according to them they were providing services to their clients without adhering to the nation’s Anti-money laundering rules in 2024.
It was also announced on Thursday that it was categorically made clear that Binance had committed multiple violations of the Prevention of Money Laundering Act (PMLA) 2002.
As the latest reports suggest, Binance has been hit with a fine of 18.82 million rupees which is approximately $2.25 million by India’s Financial Intelligence Unit (FIU) as the crypto exchange firm battles for its oncoming reputation in an ongoing court trial in Nigeria.
Rules And Regulations For Cryptocurrency Company
In India, there are certain rules and regulations are set for virtual asset providers and giants like Binance and other crypto exchanges like these where they are required to be registered with the FIU as a reporting entity and comply with the anti-money laundering rules.
It was however revealed to FIU where they exposed that Binance had already violated three of their sections of the country’s Prevention of Money Laundering (PMLA), 2002.
Regulatory Fines From Other Countries
#RegulatoryFinesFromOtherCountries
This isn’t the first time when Binance has been accused of something like that. Earlier we saw how the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) announced that it would be imposing about 4.4 million administrative monetary penalties on Binance for failing to register and report large transactions in digital assets.
According to further reports it was later revealed that Binance has failed to register itself as a business and does not comply with the country’s policies and therefore has to deal with the brunt of such big fines.
However, the cryptocurrency exchange appealed against the director of FINTRAC over allegations of non-compliance with AML and countering the Financing of terrorism regulations.
This wasn’t the only time, we earlier saw how in Nigeria the Nigerian authorities also detained two finance executives following allegations of tax fraud and money laundering. It was after this when the two Nigerian executives were detained few officials of Binance visited Nigeria and tried to clarify the entire scenario.
Why Is Binance Still Not Trusted?
There are various reasons as to why Binance is still not trusted by many. The recent controversies leading up to the Binance non-compliance with some of the country’s rules and regulations are also because of these factors which we believe are some of the pivoting ones;
1. Regulatory Issues
Binance has faced regulatory issues and legal challenges in many countries which include Germany, the US, the UK, Japan, and other jurisdictions.
2. Operational Transaparency
Some financial experts also claim that Binance lacks transparency in its operations, which can be a massive red flag for many users.
3. Compliance
The ongoing cases that are by the way still prevailing can lead to some changes which means that there will be some changes in some regions.
Conclusion
While Binance is still trusted by a lot of users and people globally around the world, while it is still very reliable among many there are still some potential risks that are involved in it. Potential users should stay informed and use it on its risks. Furthermore, in our opinion for Binance to operate in various countries, it needs to comply with all the rules and regulations of the respective countries.
