Binance fined by Turkish authorities over non-compliance to new rules

Turkey's Financial Crimes Investigation Board (MASAK) has fined Binance's Turkish affiliate, BN Teknologi, an 8 million lira penalty.
Turkey's Financial Crimes Investigation Board (MASAK) has fined Binance's Turkish affiliate, BN Teknologi, an 8 million lira penalty.

According to a Reuters report, Turkey’s Financial Crimes Investigation Board (MASAK) has fined Binance’s Turkish affiliate, BN Teknologi, an 8 million lira (about $751,314) penalty.

While the specifics are still hazy, it appears that the Binance Turkish branch failed to comply with new Turkish rules requiring crypto exchanges to track customer information for taxation purposes. According to Reuters, the penalties were imposed after MASAK liability inspections revealed infractions of Turkey’s crypto-asset legislation. Anadolu Agency, which first reported the event, said that the fine on the Binance subsidiary is the first of its sort on any crypto exchange in Turkey since the establishment of MASAK to supervise the country’s crypto sector.

Turkey has recently announced that its crypto law is fully drafted and will be soon presented to Parliament.

Binance and crypto-regulators 

Binance, being one of the oldest and largest cryptocurrency exchanges, has been subjected to a great deal of regulatory scrutiny. The exchange was founded in China four years back but had to shift to Japan the following year due to China’s tougher attitude toward the cryptocurrency industry.

While authorities have scrutinized the exchange over the years, 2021 put it through the rough patch. 

The United States, the United Kingdom, Italy, Germany, the Netherlands, Malta, Singapore, and Japan are some of the countries that have attacked the notable exchange. Binance’s reaction to the restrictions has been mainly favorable, and they appear to have recovered from their difficulties. The fact that the exchange has indicated intentions to open key offices worldwide to better interact with authorities clearly indicates the message.

The exchange giant has also been working to improve its ability to communicate with regulators by adding people with regulatory compliance knowledge. In October, the firm welcomed its first Chief Regulatory Liaison Officer to narrow down the gap between the regulatory bodies and its operations.