Global authorities have issued fines totalling USD 5.8 billion to crypto and fintech groups in 2023 in an effort to tackle illicit money flows.
Cryptocurrency and fintech entities faced unprecedented penalties, surpassing the total fines imposed on the entire traditional financial system.
Total fines related to money laundering and financial crimes increased by over 30% to reach USD 6.6 billion.
Cryptocurrency firms faced 11 penalties compared to an average of fewer than two per year over the preceding five years.
Payments providers encountered 27 fines, a substantial increase from their average of about five per year between 2018 and 2022.
The UK’s Financial Conduct Authority deems the risks posed by the sector as ‘unacceptable’.
Fines against traditional financial institutions might rise again as suspicious patterns emerge from dealings with Russian entities.
The cumulative fines of USD 5.8 billion significantly exceeded the USD 835 million paid by traditional financial services groups in the same period.
A former head of the Financial Action Task Force expressed concerns about the lack of global regulatory alignment for crypto firms in most jurisdictions.
Cryptocurrency risks continue to escalate, providing opportunities for exploitation by criminals.
