Canada has levied a hefty fine against Binance, the world’s largest crypto exchange, for breaching the nation’s anti-money laundering regulations last year.
According to a public notice released on Thursday, Binance failed to comply with rules and registrations about its operation as a foreign money services business (FMSB). The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a CAD 6,002,000 fine on May 7, 2024, citing two violations discovered during a compliance activity in 2023.
Alongside its failure to register as an FMSB, Binance neglected to report large virtual currency transactions exceeding CAD 10,000. Between June 1, 2021, and July 19, 2023, Binance improperly reported 5,902 transactions of this nature.
This penalty follows closely after Binance’s co-founder and former CEO, Changpeng Zhao (CZ), received a four-month prison sentence for inadequately implementing know-your-customer (KYC) and anti-money laundering (AML) measures.
In November, CZ and Binance admitted to AML violations and agreed to pay separate fines totaling $50 million and $4 billion as part of a settlement with the US Department of Justice.
Notably, Canada’s fine, approximately $4.4 million, aligns with previous penalties against Binance associated with the number ‘4’. Despite ongoing legal challenges, including a lawsuit from the US Securities and Exchange Commission (SEC) for listing alleged securities, Binance faces obstacles globally.
In Nigeria, CEO Richard Teng is embroiled in a dispute with the government over the detention of a Binance executive for over 70 days. Binance has ceased operations in Canada due to regulatory hurdles, while rival exchange Coinbase recently secured full licensing to operate in the country.
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