Turkey slaps Binance with $ 750,000 fine as country’s crypto law braces for parliament

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Turkish regulators have fined local cryptocurrency exchange Binance after allegedly demonstrating non-compliance with digital currency laws relating to customer information.

The exchange that operates under BN Teknoloji has been fined 8 million Turkish liras ($ 750,000) by Turkey’s Financial Crimes Investigation Board (MASAK), which is the country’s first punitive measure. agency since she began overseeing the crypto industry, Reuters reports.

The exchange allegedly violated various regulations that emerged during liability inspections. Notably, Binance is accused of failing to provide client information related to money laundering in accordance with new laws enacted earlier this year.

In April, regulators informed exchanges operating in Turkey that they would be required to share user information primarily related to the tax regulation of digital currencies. According to the Ministry of Finance, MASAK would use the information for various aspects such as monitoring and preventing crime.

New crypto law for parliament

The fine comes as cryptocurrencies continue to gain popularity among Turkish residents and the government has taken several steps to regulate the sector, resulting in a new crypto bill.

President Recep Tayyip Erdoğan has reportedly confirmed that the bill will now be transferred to the country’s parliament, according to local media NTV.

Notably, residents view cryptocurrencies as a safe haven due to the decline in the value of the Turkish Lira even as President Erdoğan prepares to implement a new business model.

With the growing importance of cryptocurrencies among the population, major players in the financial industry have also ruled out the possibility of a complete crypto ban. As previously reported by Finbold, Central Bank Governor Sahap Kavcioglu noted that although the country has banned crypto payments, the same will not be extended to digital assets.

The bank said the ban on crypto payments was in part due to a lack of a regulatory framework. However, it is still not clear whether crypto-based payments will be allowed under the proposed new law.

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