Turkey Slams Binance with First-of-its-Kind $750,000 Fine

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Last Updated on 26 December 2021 by CryptoTips.eu

Jeroen Kok

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The Turkish branch of the world’s leading crypto exchange, Binance, has come under a heavy $750,000 fine by Turkey’s financial regulator, reports say.

This was in response to Binance Turkey’s violation of the country’s recent rule. The Financial Crimes Investigation Board (MASAK) in the country had earlier this year constituted a new set of rules regarding cryptocurrencies. The rules require crypto exchanges to to track user information among other details and make available to the regulator.

This is with a view to enforcing tax regulations of cryptocurrencies and to prevent money laundering. Binance Turkey failed to provide such information and as one of the top exchanges in Turkey, it is the first exchange to face this kind of penalty regarding the new rules.

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Turkey unfriendly to crypto despite Lira crash

The Turkish Lira, Turkey’s national currency has been in a free fall against the U.S Dollar for some time now. This has raised concerns over the economic future of the country. As a result, the residents have turned to crypto as a remedy, majorly a store of value to help them escape the rapidly rising inflation.

Apparently, the government does not share in this sentiment as it seems to be getting tougher on cryptocurrencies which the citizens consider to be a way out of the overwhelming inflation swallowing up the Lira.

This is unlike places like Dubai that have accepted Binance and are partnering with it to expand crypto reach in the city despite the relative stability of their currency.

Turkey is not the only country that has been unfriendly towards Binance. France, which was initially considered to be a potential destination for the exchange’s global headquarters, clearly rejected it, saying it has to comply with Anti Money Laundering (AML) regulations before it can be accepted into the country.

At the moment, Dubai may be the destination for Binance’s global headquarters considering the recent partnership with the city government and the fact that the CEO Changpeng Zhao bought a home there. Turkey’s unfriendly regulation on the other hand is more likely to drive out the exchange than to make it develop such relationships as with Dubai.

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