Canada Fines Binance Millions for AML Violations
Regulators in Canada have hit Binance with a hefty fine of $4.38 million for allegedly violating anti-money laundering and terrorist financing laws. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) penalized the world’s largest crypto exchange platform after it failed to register as a foreign money services business.
According to a report by Reuters, Binance failed to report receiving crypto assets worth C$10,000 or more on 5,902 separate occasions between June 1st, 2021 and July 19th, 2023. This failure to comply with regulations led to the significant fine imposed by FINTRAC.
Binance made the decision to exit the Canadian market in May of last year, citing issues with the country’s regulations on investor limits and stablecoins. The company stated that the new guidance provided to crypto exchanges in Canada made the market “no longer tenable” for Binance.
Despite leaving Canada, Binance expressed willingness to return to the country if proper regulations are established. Last year, the Canadian chief executive of Binance, Changpeng Zhao, pleaded guilty in a US court to violating anti-money laundering laws and was sentenced to four months in prison. Binance was also hit with a massive $4.3 billion penalty as a result of the violations.
The news of the fine imposed on Binance by Canadian regulators highlights the increasing scrutiny and enforcement actions faced by cryptocurrency exchanges around the world. Investors and users are advised to stay informed and exercise caution when engaging in high-risk investments in the crypto space.
