Binance, a popular cryptocurrency exchange, has been hit with a hefty fine by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for violating the country’s laws on anti-money laundering and anti-terrorist financing. In a press release on May 9, FINTRAC announced a penalty of 6 million CAD, which is equivalent to $4.4 million.
According to FINTRAC, Binance committed two infractions. Firstly, the exchange failed to register as a foreign financial service provider. Secondly, Binance neglected to report digital transactions exceeding $10,000 between June 2021 and July 2023.
It is worth noting that Binance had already announced its departure from the Canadian market in May of the previous year due to new cryptocurrency legislation surrounding stablecoins. The Canadian Securities Administrators (CSA) had imposed a ban on stablecoin deposits and purchases without prior approval.
In response to the latest development, Sarah Paquet, the director of FINTRAC, emphasized that Canada’s regulations on Anti-Money Laundering and Anti-Terrorist Financing are in place to protect Canadians and maintain the stability of the economy. She added that FINTRAC will continue to assist businesses in understanding and fulfilling their obligations.
FINTRAC’s role is to ensure that entities operating in Canada comply with the Money Laundering and Terrorist Financing Act. The organization also collects and analyzes financial data to support law enforcement and national security efforts against money laundering and terrorism financing.
This recent fine is just one of the many regulatory challenges that Binance Holdings Limited has faced. Previously, the company reached a settlement with the US Department of Justice, resulting in the forfeiture of $2.51 billion and a fine. Binance’s Founder and former CEO Changpeng Zhao (CZ) was also penalized $50 million and required to step down. Furthermore, CZ was later sentenced to four months in prison after being found guilty of money laundering charges.
In addition to its issues in Canada and the US, Binance is currently dealing with regulatory problems in Nigeria. Two of its representatives have been arrested in the country, and Binance is facing allegations of violating Anti-Money Laundering laws and contributing to the devaluation of the Nigerian currency, the Naira. However, Binance CEO Richard Teng has accused Nigerian authorities of attempting to extort bribes in order to close the case.
Please note that the above article is for informational purposes only and should not be considered financial advice. The views expressed in the article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.