Ready to regulate cryptocurrencies, Turkey fine Binance

BN Teknoloji, the Turkish branch of the Binance cryptocurrency exchange, was fined by Turkey’s Financial Crimes Investigation Council (MASAK) more than $750,000 for alleged violations found during liability inspections.

According to a Reuters, the fine imposed was the first of its kind after the authority assumed responsibility for overseeing cryptocurrency service providers in May.

MASAK accused Binance of violating Law No. 5549 on the Prevention of Crime Laundering Products.

This law requires Turkish financial companies to identify and verify identifying information of all their customers.

In addition, it requires these institutions to report any suspicious activities of their customers within 10 days.

There is, however, no more detailed information about alleged Binance violations. A Binance spokesperson said the platform works together with the Turkish state to create a sustainable, healthy and safe ecosystem.

Cryptocurrency regulation in Turkey

The fine comes at a time when Turkey is ready to regulate cryptocurrencies. As reported by local media, NTV, the law to regulate BTC is ready.

“We will send it to parliament without delay,” President Recep Tayyip Erdoğan said on 24 December.

It is noteworthy that, in March of this year, in the midst of a financial crisis, the government banned the use of cryptocurrencies in payments.

“Payment service providers will not be able to develop business models or provide any services related to these business models,” said a statement from the Central Bank at the time.

Back in September, Erdoğan claimed that he was “in a war against BTC”. At the time, he indicated that the state would take measures to prevent the use of BTC among the Turkish population.

Binance against regulators

As for Binance, this is not the first time the exchange has faced legal issues from regulators.

Since the beginning of the year, regulators in several countries in Europe as well as Asia have claimed that Binance was not licensed to offer any cryptocurrency services.

The list of countries includes Japan, United Kingdom, Singapore, Cayman Islands, Malta, Poland, Italy and Netherlands.