Binance under FRA monitorship for 3 years, gains regulatory approval in India
- Binance will be monitored by FRA for the next 3 years to ensure compliance.
- The cryptocurrency exchange has received approval from India's FIU to resume operations.
- Binance denies allegations of market manipulation by DWF Labs.
The United States Department of Justice (DOJ) has chosen Forensic Risk Alliance (FRA) to make sure Binance follows the rules about cryptocurrency. This will happen over the next three years. Binance agreed to have a third-party firm watch over them as part of a deal in November 2023. They admitted to doing illegal things and had to pay a $4.3 billion fine. FRA will check Binance's records, places, and workers to keep the DOJ updated. Sullivan & Cromwell was supposed to do this job, but they worked with another crypto exchange before that went bankrupt. So, the DOJ picked FRA instead. Binance's former CEO, Changpeng Zhao, was put in jail on April 30. He got a four-month sentence for not having a good Anti-Money Laundering program at Binance. Even though they wanted him in jail for three years, the judge decided on a shorter time because there was no proof he knew about the illegal things happening at Binance. Binance got approval to work in India from the Financial Intelligence Unit (FIU). They are the second foreign crypto exchange to get this approval after KuCoin. Some other exchanges also got a notice in December 2023 for not following the rules. The Indian government told them to stop their services in India in January 2024. Binance and KuCoin worked with the Indian regulators to follow the rules and start working again. But some other exchanges like OKX and BitStamp stopped their services in India. Binance had to pay a $2 million fine to come back to India. Many Indian investors moved to foreign exchanges to avoid high taxes in India. Binance was a big part of the trading volume from India. India's strict tax rules and unclear regulations made many crypto businesses move out of the country. Binance denied claims of market manipulation from DWF Labs. They said they don't allow any cheating on their platform and ban users who break the rules. DWF Labs was accused of manipulating the prices of some cryptocurrencies in 2023. Binance said their surveillance program would prevent this kind of cheating. They are serious about stopping market manipulation on their platform.