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Binance cryptocurrency exchange has come under regulatory fire again, this time in Turkey. The country’s Financial Crimes Investigation Board (MASAK) has reportedly slapped a fine of 8 million lira (nearly $750,000) on the crypto exchange's local unit for the alleged violation of anti-money laundering laws (AML).
Turkish Regulator Fines Binance Turkey
According to a report from Anadolu Agency (AA) Saturday, Binance Turkey has been accused of non-compliance with digital currency laws and failing to comply with the AML regulations.
As per the report, MASAK carried out an audit of Law No. 5549 on Prevention of Laundering Proceeds of Crime, also known as the AML Law, and found Binance's Turkey operation guilty of violating its local anti-money laundering laws.
Turkish AML laws require companies to identify and verify the personal identification information of customers on the platform which includes details such as surname, date of birth, T.C. identification number, the Turkish equivalent of a social security number. In case of any suspicious activities, the law requires businesses to report to the authorities within ten days.
As per the law, platforms need to track user information among other details to impose crypto taxation and prevent money laundering. However, Binance reportedly failed to come forward with the requested information and therefore was not abiding by the law.
Consequently, Binance Turkey that operates under BN Teknoloji was fined 8 million Turkish lira ($750,000) by MASAK, becoming the first crypto business to get fined by the Turkish government.
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.