The National Agency for Advanced Projects (NAPP) of Uzbekistan has imposed a fine on the Binance crypto exchange, one of the world’s largest cryptocurrency exchanges, Kapital.uz reports. This action follows an audit conducted by NAPP, which revealed several violations of the licensing requirements in the field of cryptocurrency turnover.
Violations identified
The audit identified several areas where Binance failed to comply with the regulations. These include:
- Providing services to Uzbekistan citizens
Binance was found to be providing services to citizens of Uzbekistan for transactions with cryptocurrencies.
- Conducting operations with anonymous and criminal crypto assets
Binance was found to be conducting operations with anonymous and criminal crypto assets and funds.
- Lack of legal entity status in Uzbekistan
Binance is not a legal entity in Uzbekistan.
- Absence of servers and electronic platforms in country
Binance does not have servers or an electronic platform in Uzbekistan.
- Non-compliance with Uzbekistan legislation
Binance failed to comply with the requirements of the legislation of Uzbekistan on cryptocurrency turnover, countering the legalization of criminal proceeds and the financing of terrorism, as well as the storage and use of personal data.
- Lack of information on prevention of participation
Binance lacked information on the prevention of participation of certain persons in the authorized capital of service providers and offshore companies.
- Absence of formed authorized capital
Binance did not have a formed authorized capital, part of which should be reserved in a separate account in the Bank of Uzbekistan.
Consequences
Following these violations, a verification report was drawn up and directed to Binance to eliminate the problems. However, Binance failed to take the necessary measures, including obtaining a license from a service provider in Uzbekistan.
As a result, NAPP decided to impose a fine of UZS 99mn ($7,293), which will be sent to both the Binance crypto exchange and the jurisdictional regulator where the company is registered.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)