Breaking: Binance Slapped With $4.4M Fine in Canada For AML Violations

Top digital assets service provider Binance is looking to pay another huge settlement fee to financial regulators after getting charged for money laundering again.

Binance Woes Continues

On May 9, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) levied Binance with a fine of 6 million Canadian dollars. This sum is equivalent to $4.3 million. Binance was charged with violation of money laundering and terrorist financing laws.

The Canadian anti-money laundering agency claimed that the popular crypto exchange did not perform its regulatory obligation in the region. It failed to register as a foreign money service business with the appropriate authorities before offering its services to Canadians.

Moreso, FINTRAC highlighted Binance’s nonchalant approach towards registration even after stating multiple deadlines. Instead, the exchange packed up and exited Canada last year but continued to receive crypto from Canadians.

It was reported that cryptocurrencies worth about 10,000 Canadian dollars in 5,902 different transactions were processed via the Binance platform between June 1, 2021, and July 19, 2023. The crypto exchange allegedly did not conduct Know-Your-Customer (KYC) procedures for the accounts attached to these transactions.

This fine comes off as the second the firm will be slammed with after the $4.3 billion fine from the United States Department of Justice (DOJ) in December 2023. With this new fine, the exchange’s woes in key regions become amplified.

There were recent allegations reported by The Wall Street Journal (WSJ) about Binance permitting market manipulation on its exchange platform. The accusations were sourced from insiders and internal documents. However, the exchange has unequivocally refuted the claims, emphasizing its commitment to maintaining strict market surveillance protocols.

While Binance continues to struggle, there’s an abundance of best crypto exchanges in Canada without these troubles.

More Strains Ahead For Binance

While the challenges of Binance may be tough in Canada, they are even tougher in its other promising markets. Notably, its regulatory challenges in Nigeria are getting intense. The West African giant is accusing Binance of tax evasion and currency manipulation offenses.

The trading platform had exited the Nigerian market partially, however, its executive Tigran Gambaryan remains in custody and is facing trials. The trading platform through its CEO Richard Teng has called on the government to release Tigran. He further compounded the case when he noted that some anonymous persons within the government tried to lobby a $150 million bribe to make its problems go away.

The Nigerian government has denied these allegations, emphasizing how Binance’s actions in the country need court redress.

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