violations

According to the Securities Times, Xiaohongshu has launched a special governance action for certified professional accounts in the financial sector starting from June 3. Based on relevant laws and regulations as well as platform rules, financial certifications are only issued to institutions holding compliant licenses. The nicknames of certified professional accounts on the platform must strictly match the actual business scope of the certified entity and must not obtain certification marks through false or misleading information. In the past week, Xiaohongshu has dealt with over 1,500 non-compliant financial professional accounts and will continue to comprehensively strengthen the public verification and validation mechanism, conducting regular inspections and handling of existing accounts.Staff introduced that since May, the Xiaohongshu platform has dealt with a total of 31,000 accounts involved in financial sector violations and marketing accounts without financial-related qualifications, including 539 notes and 146 comments related to illegal inducement of cross-border investment issues; 141 related notes regarding the low-priced resale of foreign investment bank research reports, and freezing of 132 related products. In addition, the platform has also handled over 130 pieces of suspected illegal information related to gold financial marketing promotion and domestic promotion of overseas platforms.

According to a report by Reuters citing the German newspaper Handelsblatt, the European Union is planning to impose fines in the hundreds of millions of euros on Google's parent company Alphabet in response to its alleged violations of the Digital Markets Act (DMA). Sources indicate that a related decision is nearing completion and is expected to be announced before the summer recess, potentially becoming the largest fine issued by the EU under the DMA.The investigation officially began in March 2025, focusing on whether Google prioritizes its own services in search results, thereby harming fair competition in the market. The European Commission stated that its primary goal is to ensure corporate compliance rather than simply imposing penalties, but if the corrective measures do not meet regulatory requirements, enforcement procedures will continue. Google responded that the adjustments made to its search products in accordance with DMA requirements have significantly impacted user experience and expressed a desire to reach a resolution with regulators.

The Federal Court of Australia ordered Binance's Australian derivatives division (i.e., Oztures Trading Pty Ltd) to pay a fine of AUD 10 million (approximately USD 6.9 million).During the period from 2022 to 2023, the entity incorrectly classified over 85% of local customers as wholesale investors, resulting in 524 retail customers being exposed to high-risk crypto derivatives without statutory consumer protections, leading to trading losses of approximately AUD 8,660,000 (about USD 5.9 million) and fee losses of AUD 3,900,000 (about USD 2.7 million). Joe Longo, Chairman of the Australian Securities and Investments Commission (ASIC), stated that Binance failed to establish basic compliance review mechanisms and incorrectly approved hundreds of wholesale investor applications. According to the fact statement submitted to the court, Binance acknowledged flaws in its customer onboarding process, allowing applicants to repeatedly take the eligibility test until they passed, and that senior compliance personnel inadequately reviewed application materials. Binance admitted to six violations, including failing to provide product disclosure statements to retail customers, not conducting target market assessments, and not maintaining a compliant internal dispute resolution system. This fine is in addition to approximately AUD 13.1 million (about USD 9 million) in customer compensation previously supervised by ASIC. The entity's Australian financial services license was revoked in April 2023.

A leading polysilicon company in Xinjiang was fined and had illegal gains confiscated by regulatory authorities for supplying power to virtual currency mining activities, with a total amount exceeding 100 million yuan.The background of the relevant rectification shows that local authorities are intensifying regulation of virtual currency mining, requiring comprehensive inspections and strictly prohibiting companies from illegally transferring power in any form. Currently, Xinjiang has clearly classified virtual currency mining as an industry to be eliminated, and related law enforcement actions are ongoing.

The founder of OpenClaw, Peter Steinberger, responded on social media regarding "a user being banned after mentioning Bitcoin in OpenClaw's Discord," stating, "We have strict server rules, and users agree to comply with them upon entering the server. One of these rules is a complete ban on mentioning cryptocurrencies."Afterward, Peter Steinberger inquired about the user's account name, indicating that he would manually re-add them to OpenClaw's Discord group.

The U.S. Department of Justice announced that the cryptocurrency trading platform Paxful Holdings Inc. has been fined $4 million for failing to establish effective anti-money laundering controls.Prosecutors alleged that the platform has long allowed illegal funds related to fraud, prostitution, and human trafficking to flow through it, profiting from these activities. The Department of Justice stated that Paxful was aware that some customer funds were derived from criminal activities but continued to provide services, using lax anti-money laundering regulations as a selling point to attract users. The investigation also pointed out that the platform processed cryptocurrency transactions for websites including Backpage, which is believed to have been used to post advertisements related to prostitution, involving minors. Data shows that from 2015 to 2022, approximately $17 million worth of Bitcoin flowed through Paxful wallets to related websites, with the platform earning at least $2.7 million in profits from this. The Department of Justice stated that Paxful's founder even referred to the resulting business growth as the "Backpage Effect."

According to CoinDesk, India's federal budget for the fiscal year 2026-27 maintains the existing 30% cryptocurrency capital gains tax and 1% withholding tax, disappointing industry groups that had sought tax reductions. The government did not adjust the tax rates but proposed new penalties for entities that fail to properly report cryptocurrency transactions under Section 509 of the Income Tax Act starting from April 1, 2026.Failure to submit the required reports will incur a daily fine of 200 rupees (approximately $2.2) until the non-compliance ends. If the submitted information is incorrect, or if errors are not corrected after being discovered, a fixed penalty of 50,000 rupees (approximately $545) will be imposed. Officials stated that this move aims to strengthen compliance, but market participants warn that it will continue to create friction for traders.

The Federal Court of Australia ruled that BPS Financial was fined AUD 14 million (approximately USD 9.7 million) for operating the Qoin wallet project without obtaining the necessary licenses and for making misleading statements to consumers.

According to Cointelegraph, the Federal Court of Australia has ruled that financial services company BPS Financial must pay a fine of 14 million AUD (approximately 9.3 million USD) for violations in promoting and operating the Qoin Wallet product. Of this amount, about 1.3 million USD is for operating financial services without a license, and 8 million USD is for making misleading and deceptive statements.The Australian Securities and Investments Commission (ASIC) accused BPS of issuing the product and providing financial advice without holding an Australian financial services license between January 2020 and mid-2023, in violation of the Corporations Act. The court found that senior management of the company was involved and that there were deficiencies in the compliance system, constituting "serious and illegal conduct."In addition to the fine, BPS is also prohibited from operating financial services without a license for the next 10 years and must publish court-mandated announcements on the Qoin Wallet app and website, while also bearing most of ASIC's legal costs.

According to Cointelegraph, the UAE's newly implemented Federal Decree No. 6 brings decentralized finance (DeFi) and Web3 projects under regulatory oversight, requiring platforms that provide payment, trading, lending, custody, or investment services to obtain a license from the Central Bank of the UAE.The law will take effect on September 16, 2025, ending the "code-only" regulatory exemption defense, with violators facing fines of up to 1 billion dirhams (approximately $272 million) and potential criminal sanctions. Legal experts clarify that the regulation does not prohibit individuals from using self-custody wallets but expands the regulatory scope for businesses. Project teams must complete compliance adjustments before the transition period deadline in September 2026.

Regarding the community mention that "Binance has begun to recover improper profits from the Alpha airdrop due to violations, and several accounts of suspected studio Alpha airdrop hunters have been frozen with assets exceeding $10,000." He Yi responded to confirm this event and stated that ordinary users are not affected.

Coinbase CEO Brian Armstrong posted on the X platform that Coinbase is bringing token sales back to the platform. Currently, there are issues such as unfair access, excessive extraction, and misaligned incentives in the token sales market, which hinder industry development.The Coinbase token sale aims to reward truly loyal users through a distribution algorithm. Violations such as "flipping" tokens will be penalized, aiming to align the incentive mechanisms between projects and their communities.

ChainCatcher news, according to Crypto Briefing, Algeria officially enacted Law No. 25-10 on July 24, completely banning all cryptocurrency-related activities. The law prohibits the issuance, buying, selling, holding, using, and promoting of crypto assets, while also classifying cryptocurrency mining, the use of digital wallets, and the operation of exchanges as illegal activities.Violators will face imprisonment of 2 months to 1 year, as well as fines ranging from 200,000 to 1,000,000 dinars (approximately $1,540 to $7,700). If organized crime networks or financial criminal activities are involved, the penalties will be further intensified.The law defines cryptocurrency as "property, income, funds, or financial assets," aiming to strengthen anti-money laundering and counter-terrorism financing regulations, and to align national standards with the Financial Action Task Force (FATF).

ChainCatcher message, the Australian Securities and Investments Commission (ASIC) recently issued an official investor warning, stating that the cryptocurrency trading platform Bitget and its associated entity BTG Technology Holdings Limited are suspected of violating local financial services regulations by offering cryptocurrency contract products to Australian investors without obtaining the necessary authorization.

ChainCatcher message, Binance announced that it has discovered some users participating in the Alpha activities through bots, undermining the fairness of the Alpha Points project. As a result, the platform has upgraded its risk control system to enhance the detection and handling of related behaviors.Binance clearly stated that any actions using scripts, automated tools, or other non-manual methods will be considered violations, and the Alpha Points eligibility of the relevant accounts will be revoked, with further restrictions potentially implemented if necessary. Binance urges all users to comply with the rules to jointly maintain the fairness and transparency of the project.

ChainCatcher news, the Indonesian Ministry of Communication and Information Technology (Komdigi) recently announced that it has temporarily revoked the electronic system operator registration certificates (TDPSE) related to Worldcoin and WorldID services.The official stated that this decision is based on preliminary investigations that found the relevant services suspected of violating Indonesian electronic system regulations. The investigation revealed that the company allegedly responsible for operations, PT. Terang Bulan Abadi, had not registered as an electronic system operator (PSE) as required and did not hold the necessary TDPSE certificate; it was also found that the Worldcoin-related services were actually operating under the registration certificate of another legal entity, PT. Sandina Abadi Nusantara.The Ministry of Communication and Information Technology stated that it plans to summon relevant personnel from both companies for further investigation and handling of this violation incident.

According to ChainCatcher news, the U.S. Securities and Exchange Commission (SEC) announced that the Massachusetts District Court has made a final ruling against CLS Global FZC LLC, a UAE company claiming to be a cryptocurrency market maker, finding it in violation of securities laws.The SEC accused CLS Global of participating in a scheme to manipulate the "NexFundAI" market, issuing and selling the cryptocurrency as a security to retail investors, and inducing investors to purchase by creating the illusion of active trading. CLS Global agreed to the judgment and is required to pay a civil penalty of $425,000, a disgorgement of $3,000, and pre-judgment interest of $80.39.

ChainCatcher news, according to The Block, Jack Dorsey's payment company Block, Inc. has reached a $40 million settlement with New York state financial regulators due to anti-money laundering violations.The consent order released by the New York State Department of Financial Services on Thursday stated that the investigation found that the fintech company, formerly known as Square, "failed to adequately consider the significant risks posed by the scale and complexity of its business" in its anti-money laundering program when providing Bitcoin services through Cash App.Regulators specifically pointed out three major vulnerabilities at Block: a lack of risk-based anti-money laundering controls, insufficient customer due diligence, and lax handling of high-risk Bitcoin transactions that led to a large number of anonymous transactions going unchecked. This is the second time this year that Block has paid a settlement due to anti-money laundering issues. In January, the company paid $80 million to financial regulators in 48 states.A Block spokesperson stated that this settlement marks the resolution of all state-level remittance license matters and emphasized that while the company did not admit to the findings of the investigation, it has invested significant resources to improve the compliance framework of Cash App. Under the agreement, Block must hire an independent monitor to implement corrective actions.

ChainCatcher news, according to Wall Street Journal reports, the EU plans to impose a hefty fine of over $1 billion on Musk's social platform X, due to X's alleged violations of the Digital Services Act, failing to effectively regulate false information and illegal content on the platform. Regulatory authorities are also advancing a second investigation against X, and may include the revenues of Musk's other private companies in the penalty base, potentially leading to a final fine that far exceeds expectations. Analysts believe that the EU's recent regulation of tech companies may be one of the reasons for Trump's announcement this week of imposing high tariffs on the EU.The New York Times cited four informed sources revealing that EU regulators are preparing to impose heavy penalties on Musk's social platform X, as the platform is suspected of violating the Digital Services Act (DSA) regarding the fight against illegal content and false information. This penalty is expected to be officially announced this summer and may become the EU's first formal penalty under this law.