- Binance, a leading cryptocurrency exchange, has been fined $4.3 million USD by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).
- The fine is due to Binance’s violation of terrorist financing and money laundering laws, as well as failing to register as a foreign money services business.
- Between June 2021 and July 2023, Binance reportedly failed to report single transactions over $10,000 on 5,902 occasions.
Binance faces a hefty fine from Canada’s FINTRAC for violating financial laws, marking another instance of regulatory scrutiny for the crypto exchange.
FINTRAC Imposes $4.3 Million Fine on Binance
The Canadian regulator announced the fine on Thursday, stating that Binance will have to pay $6,002,000 CAD in administrative monetary penalties. The crypto exchange is being penalized for failing to register with FINTRAC as a foreign money services business and for not reporting cryptocurrency transactions of $10,000 or more within a single payment. According to FINTRAC, Binance had several opportunities to comply but failed to meet the regulator’s deadlines.
Binance’s Ongoing Regulatory Challenges
Binance has been at the center of several major regulatory actions in recent months. Notably, former CEO Changpeng ‘CZ’ Zhao was sentenced to four months in federal prison after pleading guilty to money laundering charges. The crypto exchange also ceased all Canadian services in May of the previous year, citing the country’s stablecoin guidance and limits to crypto exchange investors. Furthermore, Binance halted operations in Nigeria following the arrest of two executives for the company’s digital asset operations within the country.
Increasing International Regulatory Pressure on Crypto Exchanges
The recent charges against Binance in Canada, coupled with the company’s legal issues in Nigeria and the U.S., could indicate an intensifying international regulatory pressure on cryptocurrency exchanges. This comes in light of a series of high-profile enforcement actions targeting the crypto industry. As the sector continues to grow, regulatory compliance will become increasingly crucial for crypto businesses.
Conclusion
The $4.3 million fine imposed on Binance by Canada’s FINTRAC underscores the growing regulatory scrutiny faced by crypto exchanges globally. As the crypto industry evolves, exchanges like Binance will need to ensure strict compliance with international financial laws to avoid hefty penalties and maintain their operations.
