Binance Challenges $4.3 Million Penalty Imposed by Canadian Regulator
Binance, a leading cryptocurrency exchange, is disputing a $4.3 million fine imposed by Canada’s financial intelligence agency, FINTRAC. According to the Canadian Press, Binance argued in its court appeal that it does not specifically target Canadian customers and that its Canadian operations are merely a byproduct of its global activities.
The exchange stated that it had previously attempted to establish a presence in Canada but abandoned those plans. In May 2023, Binance completely withdrew from the Canadian market due to new regulations surrounding stablecoins and investor restrictions, which made it impractical to continue operating there. The exchange expressed sentimentality towards Canada as the home country of its founder.
Canada’s regulator, FINTRAC, imposed the $4.3 million fine on Binance in May for non-compliance with anti-money laundering and terrorist financing regulations. The agency claimed that over a two-year period from June 2021 to July 2023, Binance failed to report single transactions of $10,000 or more on more than 5,000 occasions. Despite multiple opportunities to register as a money services business, Binance missed all the deadlines set by the regulator.
Binance is also facing other legal challenges. In April, the exchange was hit with a class-action lawsuit in Canada, accusing it of violating securities laws by selling crypto derivative products to retail investors without proper registration, thereby breaching Ontario’s Securities Act and federal regulations. The lawsuit, which represents tens of thousands of Canadian investors, seeks compensation and the reversal of unauthorized trades.
Furthermore, Binance settled with US authorities in November for a $4 billion fine for violating anti-money laundering and sanctions laws. Additionally, the Indian Financial Intelligence Unit levied a $2.24 million fine on the exchange, the largest ever imposed on a crypto entity in the country, for similar failures in complying with anti-money laundering regulations.
Stay Updated with the Latest News
