Virtual currency startup slammed with $700,000 fine

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.

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.

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.”