In a recent development, the Indian Financial Intelligence Unit (FIU) has ordered the cryptocurrency exchange Binance to pay a fine of 188.2 million Indian Rupees (approximately $2.25 million) for violating the country's Anti-Money Laundering (AML) regulations.

The FIU imposed the penalty on Wednesday, stating that Binance failed to comply with India's AML laws. The regulator had previously issued a notice to Binance in December 2023, asking the exchange to justify its actions and explain why it should not face penalties for providing services to local customers and operating in India without proper registration under AML laws.

In addition to the fine, the FIU has directed Binance to ensure strict compliance with India's AML regulations going forward. This directive comes as Binance is reportedly trying to re-enter the Indian market after being banned by Indian regulators in January.

The fine and compliance directives highlight the ongoing regulatory challenges faced by cryptocurrency exchanges globally as authorities tighten their controls on digital assets to prevent money laundering and other financial crimes. Binance, one of the largest cryptocurrency exchanges in the world, has faced similar regulatory issues in other countries, including Nigeria, where it was recently ordered to pay a fine for non-compliance.

As of now, Binance has not responded to requests for comment regarding the FIU's decision. The exchange's future in the Indian market remains uncertain, as it navigates the complex regulatory landscape and works to address the concerns raised by the Indian financial authorities.