Cryptocurrency exchange Binance was fined US$2.25 million by India’s Financial Intelligence Unit (FIU) for failing to adhere to the nation’s anti-money laundering standards.

The FIU’s decision announced Wednesday came after a detailed investigation into Binance’s operations, which revealed the exchange’s failure to meet mandatory registration and reporting requirements as a Virtual Digital Asset Service Provider under the Prevention of Money Laundering Act of 2002.

The fine highlights the growing regulatory scrutiny that cryptocurrency exchanges are facing globally, with Binance also addressing similar compliance issues in other countries, including Canada and the United States.

The FIU India said its probe into Binance’s compliance practices found several infractions, such as neglecting to maintain and disclose transaction records, failing to provide essential information to the authorities, and not preserving records in accordance with the law.

Although Binance registered with the FIU in May after receiving show-cause notices, the company has yet to make a public statement regarding the fine.

Binance’s regulatory challenges extend beyond the Indian market. In Canada, the Financial Transactions and Reports Analysis Centre (FINTRAC) penalized Binance in May for operating without registering as a foreign money services business and for not reporting certain digital currency transactions.

The United States has also seen legal action taken against the exchange for AML breaches.

These incidents are part of a global trend of increased regulatory oversight of cryptocurrency exchanges, which aims to deter money laundering and the financing of terrorism.