Binance Troubles Enters Xmas, Exchange Fined 8M Lira over Multiple Infringements

Binance, the world’s largest cryptocurrency exchange by trading volume, is still dealing with regulatory issues in 2021. According to a Reuters story, the country’s Financial Crimes Investigation Board has fined Binance’s Turkish affiliate, BN Teknologi, an 8 million lira (about $751,314) penalties (MASAK).

Binance Turkey was fined 8 million lira (almost $750,000) by the Financial Crimes Investigation Board (MASAK) after failing the financial watchdog’s audit for monitoring Anti-Money Laundering (AML) compliance.

The Financial Crimes Investigation Board (MASAK), Turkey’s financial intelligence branch under the Ministry of Finance and Treasury, found Binance’s Turkey operations in violation of rules designed to prohibit the laundering of money obtained through illegal methods. According to Anadolu Agency, MASAK audited Law No. 5549 on Prevention of Laundering Proceeds of Crime, also known as the AML Law.

The Turkish Anti-Money Laundering Law requires companies to identify and verify the personal identification information of customers on the platform, which includes information such as surname, date of birth, T.C. identification number (the Turkish equivalent of a social security number), and type and number of identity documents. Businesses must also report the authorities of questionable activity within a 10-day period, according to the regulation.

The sentence issued on BN Teknoloji, according to Anadolu, was the first of its kind since the government assumed responsibility for overseeing crypto asset service providers in May. The news organization did not disclose any additional information on the violations or inspections.

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Binance, being one of the oldest and largest cryptocurrency exchanges, has been subjected to a great deal of regulatory scrutiny. Binance was created in China in 2017, but had to shift to Japan the following year due to China’s tougher attitude on the cryptocurrency business.

While authorities have scrutinized the exchange over the years, 2021 put it through the wringer. Several regulators have taken action against Binance, ranging from orders to shut down its operations to restrictions on the services it can provide.

The United States, the United Kingdom, Italy, Germany, Poland, the Netherlands, Malta, Singapore, and Japan are among the countries that have tried to regulate the prominent exchange. Binance’s reaction to the restrictions has been mostly favorable, and they appear to have recovered. The fact that the exchange has indicated intentions to open offices throughout the world to better interact with authorities is indicative of this.

Related Reading | Binance CEO Changpeng Zhao States, “Compliance Is A Journey.”