Binance, the leading cryptocurrency exchange, has been hit with a $2.2 million fine by India's Financial Intelligence Unit (FIU) for alleged violations of local anti-money laundering (AML) regulations. The penalty comes in response to Binance's non-compliance with local AML requirements, which led to the fine.

India's FIU has imposed a substantial fine on Binance, amounting to 188.2 million rupees or $2.2 million, for failing to adhere to local AML regulations. This development marks a significant regulatory challenge for Binance as it navigates complex international financial laws.

Binance's regulatory troubles extend beyond India. Last year, Canada's anti-money laundering agency fined Binance $4.38 million for similar AML rule violations. Such repeated issues underscore the exchange's ongoing struggle to comply with varying international regulatory frameworks.

For context, India mandates the crypto exchanges and other virtual asset service providers to register with the FIU as reporting entities and adhere to strict AML guidelines.