financemagnates.com
Binance is facing another regulatory blow as Turkey’s Financial Crimes Investigation Board (MASAK) has slapped an 8 million lira (around $750,000) fine on the local unit of the cryptocurrency exchange.
First reported by the state-owned media agency Anadolu, the penalty came as the Turkish operation of Binance allegedly violated local anti-money laundering laws. The lapses surfaced after the MASK carried out an audit of Law No. 5549 on the Prevention of Laundering Proceeds of Crime on the exchange.
Turkish anti-money laundering law requires platforms to verify all customers and store their personal data, including local identity numbers. In case of any suspicious activities, businesses need to report to the authorities within ten days.
Binance, however, refrained from providing any details on the fine saying it does not publically discuss its communications with the authorities and regulators.
The report further highlighted that the penalty on Binance was the first such action against any cryptocurrency business in the country. It also indicates the Turkish regulator’s changing focus on the growing local cryptocurrency industry.
The action against Binance also conceded with a Turkish draft law on cryptocurrency regulations that will be sent to the parliament by President Recep Tayyip Erdoğan.
Binance vs Regulators
Meanwhile, Binance is no stranger to regulatory warnings and actions. Dozens of the regulators issued warnings earlier this year against the cryptocurrency exchange as it was operating without any authorization in most of the jurisdictions. These actions also forced Binance to shut several services like margin trading from many jurisdictions and also stock token trading.
Thailand’s Securities and Exchange Commission (SEC) also filed a criminal complaint against the cryptocurrency exchange for illegally offering services in the country, Finance Magnates reported earlier.