India's Financial Intelligence Unit (FIU-IND) has imposed a penalty of Rs 18.82 crore on Binance, the world's largest cryptocurrency exchange, according to an order issued on June 19.

This decision comes after nine offshore exchanges in India were shut down a few months ago for failing to register and abide by local money laundering laws in accordance with the Prevention of Money Laundering Act (PMLA) 2002.

The FIU-IND notification stated, “After considering the written and oral submissions of Binance, the FIU-IND Director, based on the material available on record, found that the charges against Binance were substantiated.”

Vivek Aggarwal, Director of FIU-IND and Additional Secretary of the Department of Revenue, Government of India, previously noted that Binance had finalised its initial registration in the country and was being evaluated for further compliance proceedings.

In January 2024, Binance, along with several other offshore cryptocurrency exchanges, was issued show-cause notices by Indian authorities and subsequently removed from the country for operating illegally.

However, in May, Binance became one of the first offshore crypto-related entities to be approved by India's FIU, subject to paying a penalty after a hearing with the FIU.

Meanwhile, rival KuCoin also completed its registration and became operational after paying a penalty fee of Rs 34.5 lakh.