Binance (BNB) Faces $4.4M Penalty in Canada Over Anti-Money Laundering (AML) Breaches

• Binance Exchange has been fined $4.3 million in Canada for violation of Anti-Money Laundering (AML) regulations, despite having exited the country earlier.
• The fine was imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
• This is the latest in a series of fines and regulatory issues faced by Binance in various jurisdictions.

Binance, the leading cryptocurrency exchange, faces a new $4.3 million fine in Canada for AML violations, marking another chapter in its ongoing regulatory troubles.

Binance’s Regulatory Woes Continue

On May 9, FINTRAC levied a fine of 6 million Canadian dollars, equivalent to $4.3 million, against Binance for violating money laundering and terrorist financing laws. The Canadian anti-money laundering agency alleged that Binance failed to register as a foreign money service business before offering its services to Canadians, and continued to operate in the country even after stating multiple deadlines for registration.

Binance’s Operations in Canada

Despite exiting Canada last year, Binance continued to process transactions from Canadians. It is 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.

Previous Fines and Allegations

This is not the first time Binance has faced regulatory issues. The exchange was slapped with a $4.3 billion fine from the United States Department of Justice (DOJ) in December 2023. There were also recent allegations reported by The Wall Street Journal (WSJ) about Binance permitting market manipulation on its exchange platform. However, Binance has refuted these claims, emphasizing its commitment to maintaining strict market surveillance protocols.

Challenges in Other Markets

Binance’s regulatory challenges are not limited to Canada. The exchange is facing intense scrutiny in Nigeria, where it is accused of tax evasion and currency manipulation offenses. Binance partially exited the Nigerian market, but 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 and denied allegations of trying to bribe government officials.

Conclusion

The latest fine in Canada adds to Binance’s growing list of regulatory issues. The exchange’s ongoing troubles underscore the increasing scrutiny faced by cryptocurrency exchanges worldwide as regulators seek to clamp down on potential financial crimes and ensure consumer protection. It remains to be seen how Binance will navigate these challenges and what impact this will have on its operations and reputation.