Fintech and crypto in the spotlight. In 2023, they received more sanctions than traditional banks. Here’s why – MilanoFinanza News


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There was not only a reduction in investment, an increase in the price of money and a decrease in consumption. The year 2023 was black for the world of digital finance also in terms of the sanctions adopted.

In fact, for the first time, fintech and cryptocurrency groups were fined more for lack of controls than the entire traditional financial system, while global authorities targeted illicit money flows through digital start-ups.

Escalation counts

Data analyzed Financial Times showed that cryptocurrency and digital payment companies paid fines last year 5.8 billion dollars due to insufficient controls and anti-money laundering issues as well as other financial crime cases.

The total figure, which includes the maximum fine against cryptocurrency exchange Binance, far exceeded that 835 million dollars traditional financial services groups paid last year, the lowest in a decade.

Dennis Kelleher, CEO of Washington-based Better Markets, supports tighter regulation. He explained FT that the numbers reflect bad practices in new corners of finance more than improvements in traditional banks.

Data collected Fenergoshow that total fines for money laundering and other financial crime violations rose more than 30% to $6.6 billion, but remained well below the 2015 peak of $11.3 billion.

The numbers were also heavily influenced by multi-billion dollar fines, such as those against last year Binance$8.9 billion fine BNP Paribas and that $5 billion suffered Goldman Sachs in 2020 for the Malaysian sovereign wealth fund scandal.

Digital finance numbers

Cryptocurrency companies saw an average of 11 fines between 2018 and 2022, compared to an average of less than two per year, while payments companies faced 27 fines, compared to an average of five fines per year between 2018 and 2022. Almost all sanctioned payment groups had less than 20 years of operation behind them. (All rights reserved)


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