Binance Turkey fined 8M lira for non-compliance against money laundering

Published at: Dec. 26, 2021

The Financial Crimes Investigation Board (MASAK), which serves as Turkey’s financial intelligence unit under the Ministry of Finance and Treasury, found crypto exchange Binance’s Turkey operations guilty of violating laws that intend to prevent the laundering of money acquired through criminal means. According to local news media Anadolu Agency, MASAK carried out an audit of Law No. 5549 on Prevention of Laundering Proceeds of Crime, also known as the AML Law.

The AML Law in Turkey requires companies to identify and verify the personal identification information of the customers on the platform, which includes details such as surname, date of birth, T.C. identification number (Turkey equivalent of a social security number) and type and number of identity documents. The law also requires businesses to immediately notify the government about suspicious activities within a 10-day period.

As Cointelegraph Turkey reported, the watchdog imposed the maximum possible administrative fine of 8 million Turkish lira for the alleged violation. Additionally, this timeline also coincides with the day President Erdoğan announced the completion of a crypto law draft that will soon be handed over to the Parliament for approval.

With this, Binance also becomes the first crypto business to get fined by the Turkish government. Moreover, MASAK is working closely with Financial Action Task Force (FATF), a global regulator against money laundering and terrorist financing, according to former Treasury and Cost Minister Lutfi Elvan:

“FATF has asked for measures to be taken against crypto trading platforms.”

In line with this request, MASAK has also agreed to report transactions that exceed the value of 10 thousand lira within 10 days.

Related: Turkey’s crypto law is ready for parliament, President Erdoğan confirms

Turkey's President Recep Tayyip Erdoğan confirmed the completion of a crypto law that will soon be handed over to the Parliament for mainstream implementation.

As Cointelegraph reported, the crypto law envisions a new economic model that can bolster Turkey’s effort to bring back the depreciating value of lira. Erdoğan also said that the recent inflation on Turkish lira is not related to mathematics but a matter of process — implying a possibility and potential of lira’s value growth:

“With this understanding, we intend to channel it to a dry spot. But the exchange rate will find its own price on the market.”

The Financial Crimes Investigation Board (MASAK) has fined Binance Turkey 8 million lira (nearly $750,000) after the crypto exchange failed the financial watchdog’s audit for monitoring Anti-Money Laundering (AML) compliance. 

Tags
Bitcoin
Regulation
Altcoin
Business
Cryptocurrency Exchange
Cryptocurrencies
Law
Binance
Aml
Turkey
Counter Terrorism Financing
Fines
Related Posts
France moves to ban anonymous crypto accounts to prevent money laundering
French financial authorities are strengthening the country’s cryptocurrency regulations in a move to prevent illicit activities like money laundering and terrorism financing. On Dec. 9, several ministries in France jointly introduced an order aiming to prevent anonymous digital asset transactions by banning anonymous crypto accounts. The new regulatory effort is backed by French finance minister Bruno Le Maire, overseas minister Sébastien Lecornu and junior economy minister Olivier Dussopt. The order is pursuant to Article 203 of France’s PACTE law, which stands for the Action Plan for Business Growth and Transformation. In the document, the ministries have admitted that digital assets …
Bitcoin / Dec. 10, 2020
Russia does ‘absolutely nothing’ to regulate crypto, RACIB head says
Despite Russia adopting its first cryptocurrency law in January 2021, the country’s cryptocurrency market is still largely unregulated and is associated with a lot of uncertainty, according to a local industry advocate. Yury Pripachkin, head of the Russian Association of Cryptoindustry and Blockchain (RACIB), argued that the existing Russian crypto regulations are nothing more than “half-measures” that have nothing to do with systematic solutions. In an interview with local news agency RBC, Pripachkin referred to Russian President Vladimir Putin issuing multiple consecutive mandates to adopt crypto regulation over the past four years. The executive highlighted that the total market capitalization …
Bitcoin / Oct. 25, 2021
Binance Singapore withdraws crypto license application
Crypto exchange Binance has withdrawn its license application for pursuing digital payment token (DPT) services in Singapore. Starting today, Binance.sg has stopped onboarding new users and will not allow Singaporeans to deposit cryptocurrencies or fiat on the exchange. By Feb 13, 2022, Binance plans to “wind down” all services that relate to dealing with cryptocurrency tokens. However, the exchange announced to take no responsibility for the users’ assets after the self-determined deadline: “With immediate effect, users must start to make plans to withdraw their crypto and fiat from Binance.sg. Accounts of registered users who have not passed KYC will be …
Adoption / Dec. 13, 2021
Turkey’s crypto law is ready for parliament, President Erdoğan confirms
Turkey's President Recep Tayyip Erdoğan has reportedly confirmed the completion of a crypto law draft that will soon be shared with the Parliament for mainstream implementation in the country. In an effort to counter the falling value of the Turkish lira, President Erdoğan shared plans to implement a new economic model while speaking at a press conference in Istanbul. As reported by local media NTV, Erdoğan said that the cryptocurrency bill is ready, adding: “We will take steps on this issue by sending it to Parliament without delay.” Acknowledging the country’s recent inflationary episode, Erdoğan said that the currency event …
Adoption / Dec. 25, 2021
Russians collectively hold $130B in crypto, prime minister says
The Russian prime minister declared that the cryptocurrency holdings of Russians are worth billions of dollars but the government is yet to adopt a regulatory framework for the industry. Russians collectively hold more than 10 trillion rubles ($130 billion) in cryptocurrencies like Bitcoin (BTC), Russian prime minister Mikhail Mishustin claimed at the annual report presentation of the Russian government on Thursday. The prime minister did not mention the source for this figure, noting that the amount is based on “various estimates,” stating: “We are well aware that we have more than 10 million young people having opened crypto wallets so …
Bitcoin / April 8, 2022