Ripple Labs is a virtual currency startup that works in conjunction with banks to launch fast and cheap international money transfers using a platform they call XRP.
Virtual currency startup slammed with $700,000 fine
The Financial Crimes Enforcement Network (FinCEN) indicted the company for failing to register as a money services business (MSB).
Ripple Labs
XRP is a digital token used to settle payments on the Ripple network. It is used as a platform to send fiat currency around the world, just like Bitcoin.
Ripple Lab was slammed with a fine of $700,000 after reaching an agreement with the Financial Crimes Enforcement Network (FinCEN).
Director Jennifer Shasky Calvery of the Financial Crimes Enforcement Network (FinCEN) said in a statement that this will serve as a lesson to all companies involved in the exchange of digital currencies.
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She also adviced them to ensure their services comply with the anti-money laundering (AML) law.
Adding that the “Innovation is laudable but only as long as it does not unreasonably expose our financial system to tech-smart criminals eager to abuse the latest and most complex products.”
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