Binance Fined $4.3 Million by Canadian Regulator for Financial Violations
Binance, one of the world’s largest cryptocurrency exchanges, has been hit with a hefty C$6 million ($4.3 million) fine by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for breaching financial regulations. The regulatory action comes as part of a series of legal challenges faced by the exchange in various jurisdictions.
According to FINTRAC, Binance failed to register as a foreign money services business despite being given multiple opportunities to do so. Additionally, between June 1, 2021, and July 19, 2023, the exchange failed to report 5,902 cryptocurrency transactions exceeding $10,000 along with their associated know-your-customer (KYC) information.
This latest fine adds to Binance’s woes, as just six months ago, the exchange agreed to pay U.S. regulators a massive $4.3 billion fine for violating anti-money laundering laws. Former Binance CEO and co-founder Changpeng “CZ” Zhao was also sentenced to four months in U.S. prison for failing to establish an adequate KYC/anti-money laundering program at the exchange.
In addition to the Canadian and U.S. legal troubles, Binance is facing challenges in Nigeria, where it has been accused of money laundering and tax evasion. An American Binance executive, Tigran Gambaryan, was arrested and charged with similar crimes. The exchange’s current CEO, Richard Teng, called for Gambaryan’s release and revealed that a significant cryptocurrency payment was requested to make the charges disappear.
These regulatory actions against Binance underscore the increasing scrutiny faced by cryptocurrency exchanges as governments and financial regulators worldwide aim to combat illicit activities facilitated by digital assets. Compliance with KYC and AML regulations has been a recurring issue for Binance, highlighting the importance of adhering to financial regulations in the cryptocurrency space.
