Binance Appeals $4.4M Fine by Canada’s FINTRAC Over AML Violations
Highlights
- Binance has appealed a $4.4 million fine from Canada's FINTRAC, which cites non-compliance with AML and CFT regulations.
- The cryptocurrency exchange argues that it did not target Canadian residents with its services.
- Binance announced plans to exit the Canadian market in May 2023 due to the tough regulatory environment.
Binance, a global cryptocurrency exchange, has formally challenged a $4.4 million fine levied by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). The fine, imposed in May, accuses Binance of failing to adhere to anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The appeal was lodged on June 5 in Canada’s Federal Court.
Binance Challenges FINTRAC’s $4.4M Fine in Court
The action by FINTRAC highlights alleged shortcomings in Binance’s operations, specifically their failure to register as a foreign money services business and to report transactions exceeding $10,000. In its appeal, Binance contends that its services were not targeted at Canadian residents. Moreover, the company declared its intent to exit the Canadian market in May 2023, citing the challenging regulatory climate as a critical reason for its decision.
This confrontation with Canadian regulators is not isolated. Binance‘s compliance issues have sparked scrutiny in various jurisdictions. The appeal in Canada underscores a broader challenge for the exchange as it navigates complex global regulatory frameworks. While Binance continues to struggle, explore the top crypto exchanges in Canada that are thriving in the regulatory scene.
Binance Wins Dismissal of Charges in Nigeria
Binance’s regulatory challenges extend beyond Canadian borders. The exchange recently settled a significant legal battle in the United States by agreeing to a $4.3 billion settlement with U.S. authorities. This settlement followed allegations similar to those made by FINTRAC and required Changpeng Zhao, the then-CEO, to resign after pleading guilty to a felony charge. Zhao is currently serving a four-month federal prison sentence.
Further complicating matters, the U.S. Department of Justice appointed the Forensic Risk Alliance to oversee Binance’s compliance measures for the next three years. This decision came after a controversial deliberation that saw Sullivan & Cromwell, a law firm entangled in the FTX collapse, lose the monitoring role.
In addition to its legal and regulatory hurdles, Binance continues to face operational challenges. Earlier this year, two of its executives were detained in Nigeria on tax evasion and money laundering charges. This incident further complicates the company’s global operations and efforts to maintain a clean regulatory slate. However, Nigeria’s Federal Inland Revenue Service (FIRS) dismissed the charges against the exchange last week, leading to Binance securing a big win in Nigeria.
Also Read: Binance Co-Founder In Damage Control Mode Over Racial Meme Message
- How the Crypto Market Could React to the Next Fed Meeting on October 29?
- $1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7
- Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
