In a significant development, crypto firms faced substantial regulatory action in 2023, paying nearly $6 billion in fines primarily due to Anti-Money Laundering (AML) violations and deficiencies in customer checks. This marked the first time crypto and fintech groups experienced higher fines for inadequate controls than the entire traditional financial system.The total fines, including a substantial $4.3 billion penalty against the crypto exchange Binance, significantly surpassed the $835 million paid by traditional financial services groups. This surge in crypto-related fines is seen as a warning by U.S. prosecutors. The fines for money laundering and other financial crime violations increased over 30% to $6.6 billion, according to data compiled by compliance software provider Fenergo.Experts anticipate that fines against crypto and payments groups may rise further in the coming years as governments implement new regulatory regimes. However, some believe that fines may decrease in the coming years as the crypto industry is now more tightly controlled compared to its early stages.
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