Strict Anti Money Laundering Regulations across the world are becoming the norm. Implementation of the norms laid down by the Financial Action Task Force is now becoming reality.
MASAK, the anti money laundering implementation body of Turkey has fined the crypto exchange Binance. MASAK is also known as the Financial Crimes Investigation Board.
MASAK, issued certain guidelines in the wake of growing usage of crypto currencies in Turkey. These guidelines require crypto exchange platforms to verify the identities of users, and to report suspicious transactions like high-volume trading.
In the failure of fulfilling these guidelines laid down by regulators, there are penal provisions on crypto exchange companies and in case of repeated violations, owners of the exchanges are expected to face prosecution.
Major economies like India, China, Turkey and Nigeria have taken the actions against the Binance. Indian enforcement agency Enforcement Directorate is already keeping an eye on subsidiary company of Binance.
Earlier this year,
- Thailand filed a criminal complaint against Binance, while the
- Cayman Islands stated that the exchange was not allowed to conduct operations there.
- Dutch central bank alleged that Binance was found not in compliance with the anti-money laundering and anti-terrorist financing laws.
- US DOJ and IRS is also scrutinising the operations of Binance.
This makes the position of the largest crypto currency exchange in the world a problematic situation. The action taken at the end of the year is a concern for the crypto currency investors across the world as the future of Binance looks in dodrums.