Binance Faces $4.4 Million Fine in Canada for Anti-Money Laundering

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Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) recently imposed a nearly $4.4 million fine on the global crypto exchange Binance.

This action is a key part of a broader crackdown targeting money laundering and terrorism financing in the rapidly expanding digital currency sector.

Canada Slaps Binance with $4.4 Million Fine

FINTRAC found that Binance flouted Canadian rules mandating registration as a foreign money services business. Despite warnings and extended deadlines, Binance breached national anti-money laundering (AML) laws.

The agency discovered that the crypto exchange failed to report over 5,900 virtual currency transactions worth $7,266.57 or more each from June 1, 2021, to July 19, 2023. This oversight highlights regulators’ hurdles in monitoring large crypto transactions and reflects the need for stricter oversight.

“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed,” Sarah Paquet, Director and Chief Executive Officer of FINTRAC.

This penalty marks another challenging chapter in Binance’s regulatory journey. Earlier this year, US authorities imprisoned its former CEO, Changpeng Zhao, for four months after he admitted to violating US AML laws.

Binance agreed to a staggering $4.32 billion settlement over various US charges. This included a $50 million fine paid to the US Commodity Futures Trading Commission and a criminal penalty.

The regulatory actions taken by Canadian and US authorities against Binance are not isolated incidents. Rather, they signify a global trend of increased scrutiny on cryptocurrency exchanges. This unified approach aims to bring more transparency and accountability to a market that has often operated in the grey areas of international finance.