Binance to Appeal $4.4M Fine Demand from Canadian Regulator
NAIROBI (CoinChapter.com) — Binance has filed an appeal against a $4.4 million fine imposed by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). The appeal, filed on June 5, addresses allegations of noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
FINTRAC imposed the fine on Binance in May, citing violations including the failure to register as a foreign money services business and report digital currency transactions exceeding $10,000. Binance, however, claims its services were not directed at Canadian residents. The exchange had already announced plans to exit the Canadian market in May 2023, attributing the decision to the challenging regulatory environment.
This legal action in Canada adds to Binance’s growing list of regulatory challenges worldwide. The exchange’s appeal against FINTRAC’s decision highlights its ongoing struggle to navigate complex global regulatory frameworks.
Binance CEO Behind Bars, Execs Caught in Nigerian Nightmare
Binance’s regulatory troubles extend beyond Canada. In November 2023, the exchange settled with U.S. authorities for $4.3 billion over similar AML and CFT violations. This settlement required former CEO Changpeng Zhao to step down after pleading guilty to a felony charge. Zhao is currently serving a four-month federal prison sentence.
Furthermore, in February, Nigerian authorities detained two Binance executives on allegations of tax evasion and money laundering. One executive, Nadeem Anjarwalla, escaped custody and is now in Kenya.
Tigran Gambaryan, a former U.S. Internal Revenue Service special agent, contracted malaria during his detention. On June 19, the Nigerian High Court dismissed Anjarwalla’s suit against his detention, citing “want of diligent prosecution.” Meanwhile, Gambaryan has filed a separate lawsuit against the Nigerian authorities, with a hearing scheduled for July 9.
Despite these challenges, Binance recently secured a legal victory in Nigeria. The Federal Inland Revenue Service dismissed charges of tax evasion and money laundering against the exchange, marking a significant win for Binance in the region.
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