The Financial Intelligence Unit of India has fined Binance $2.2 million. Binance was given approval by the anti-money laundering section in May to be subjected towards paying the fine.
1. Dilip Chenoy, Chairman, Bharat Web3 Association
2. Manhar Garegrat, Country Head India & Global Partnerships, Liminal Custody
3. Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange
The Chairman of the Bharat Web3 Association, Dilip Chenoy, stated:
"At BWA, we think that a transparent and well-defined regulatory framework is crucial to the responsible development of the Web3 sector in India. We demand that everyone involved in the business must abide by the regulations pertaining to combatting the financing of terrorism (CFT) and anti-money laundering (AML).
The Prevention of Money Laundering Act (PMLA) compliance framework, according to FIU-IND, is applicable to Virtual Digital Asset Service Providers (VDA SPs) that cater to Indian consumers, irrespective of their place of residence. The duties are action-based rather than location-based in India, emphasizing the goal of efficiently tracking and tracing fraudulent behavior.
In order to guarantee a compliant environment for VDASPs, BWA aims to act as a collaborative platform for legislators, regulators, and industry players. We express our appreciation to FIU-IND for their leadership and prospects for cooperation, and we are dedicated to establishing compliance guidelines to make the Web3 and VDA industries in India safer.
Liminal Custody's Country Head for India and Global Partnerships, Manhar Garegrat, stated:
The changes we are seeing with FIU-IND regarding Binance are quite natural and provide important insight into India's progress in regulating the country's digital asset markets. Equal growth possibilities and fair playing fields for industry participants would be guaranteed by a single legislation that applies to all local and international enterprises and stakeholders.
India is a profitable market for international businesses, and as a growing number of seasoned investors are joining the country's youthful, aspirational population, authorities must act quickly to safeguard the interests of users and customers across all industries. The digital asset market is expanding rapidly in tandem with the enormous expansion that exchange-traded funds (ETFs) are experiencing in the global financial industry. India is among the top nations in the world for the ownership of digital assets, according to a study report. It is essential to put in place a regulatory framework in such a big digital asset market to safeguard user funds and create a welcoming atmosphere for enterprises.
With a particular emphasis on India and the UAE, Liminal has been at the forefront of modifying regulatory rules and obtaining the required permits for our operations in APAC & MENA. The first custodian of digital assets to attain FIU-IND compliance is Liminal, as of late. Additionally, Liminal was granted final clearance by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) for Financial Services Permission (FSP). With this license, Liminal may function as a regulated custodian in the Middle East, a financial center that is expanding quickly.
The CEO of BuyUcoin, the second-oldest digital asset exchange in India, Shivam Thakral, stated:
This hefty fine is a blatant example of the growing regulation and scrutiny around digital assets. It is important to be knowledgeable and conscious of these advancements in order to effectively navigate this dynamic environment. I think that worldwide legislation pertaining to cryptocurrency exchanges are becoming more structured. Adherence to regulations is essential for safeguarding users and fostering a courageous business atmosphere. With consistent work, FIU-IND will create an environment that is conducive to the growth of Web3 companies and help India reach its goal of becoming a USD 1 trillion digital economy.
It is imperative that Virtual Digital Asset service providers (VASPs) in India work together to establish an ecosystem that is focused on growth for the digital asset sector. I firmly think that an amicable exchange of ideas between industry participants and authorities would result in a better developed and consumer-friendly digital asset market in India.
