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The popular cryptocurrency exchange Binance is facing a hefty $4.3 million USD fine from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for breaching terrorist financing and money laundering laws. The Canadian regulator announced this significant penalty on Thursday, highlighting Binance’s failure to register with FINTRAC as a foreign money services business and report cryptocurrency transactions exceeding $10,000 in a single payment.
According to a press release, Binance has been ordered to pay $6,002,000 CAD in administrative monetary penalties for its non-compliance with regulatory requirements. FINTRAC revealed that between June 1, 2021, and July 19, 2023, Binance neglected to report transactions over $10,000 on 5,902 occasions. The regulator emphasized that Binance had multiple opportunities to fulfill its obligations as a foreign money services business but missed the deadlines provided by FINTRAC.
Sarah Paquet, the Director and CEO of FINTRAC, emphasized the importance of Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime in safeguarding the country’s economy and citizens. She stated, “FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act.”
This latest fine adds to the growing scrutiny surrounding Binance’s regulatory compliance in the cryptocurrency industry. Recently, the former CEO Changpeng ‘CZ’ Zhao was sentenced to four months in federal prison for money laundering charges. Binance had also ceased its operations in Canada last year due to regulatory concerns and faced challenges in Nigeria, where executives were arrested for alleged manipulation of the country’s currency.
The $4.3 million fine imposed by FINTRAC underscores the increasing international regulatory pressure on cryptocurrency exchanges like Binance. As authorities worldwide crack down on financial crimes in the digital asset space, companies operating in the crypto industry are facing heightened scrutiny and enforcement actions.
