Binance Hit with $4.4 Million Fine by Canadian Regulator
Binance fined $4.4M by Canada for failing to meet anti-money laundering rules
Canada's financial regulator, FINTRAC, has fined Binance C$6 million ($4.4 million) for not adhering to anti-money laundering regulations. The penalties arise from the cryptocurrency exchange's failures to register as a foreign money services business and to report transactions exceeding $10,000.
FINTRAC pinpointed two primary infractions: Binance's non-registration as a foreign money services business and failure to report large cryptocurrency transactions. The authority imposed penalties for these breaches. Sarah Paquet, FINTRAC's Director, emphasized the commitment to enforcing compliance within the financial industry to ensure safety and integrity.
Despite having multiple opportunities to comply with the registration requirements, Binance did not fulfill these obligations by the deadlines. It was required to be registered until it ceased its Canadian operations on September 25, 2023. Throughout this period, Binance consistently overlooked its registration duties.
In response to regulatory challenges, Binance is enhancing its compliance framework. This includes the appointment of Richard Teng as the new CEO following the legal troubles of former CEO Changpeng Zhao. Binance also plans to establish a physical headquarters to fulfill regulatory demands for a more structured and present organization.
