- Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has imposed a hefty fine on Binance for non-compliance with anti-money laundering and terrorist financing laws.
- The world’s largest crypto exchange by volume reportedly failed to register as a foreign money services business, leading to a penalty of $4.38 million.
- Binance exited the Canadian market last year due to regulatory issues, but the company’s CEO, Changpeng Zhao, has expressed interest in returning if proper regulations are established.
Binance, the world’s largest crypto exchange, faces a $4.38 million fine from Canadian regulators for alleged non-compliance with anti-money laundering laws. The company’s future in Canada remains uncertain.
Binance Fined by Canadian Regulators
According to a Reuters report, Binance has been fined $4.38 million by FINTRAC for failing to register as a foreign money services business. The crypto exchange reportedly did not report crypto asset transactions worth C$10,000 ($7,310) or more on 5,902 separate occasions between June 1st, 2021 and July 19th, 2023.
Binance’s Troubled History in Canada
Binance decided to exit the Canadian market in May of last year, citing issues with the country’s regulations on investor limits and stablecoins. The company stated that the new regulations made the Canadian market “no longer tenable.” However, Binance has indicated that it would consider returning to Canada if the country establishes proper regulations.
CEO’s Legal Troubles
Changpeng Zhao, the Canadian chief executive of Binance, pleaded guilty in a US court to violating anti-money laundering laws last year. Zhao was sentenced to four months in prison and Binance was slapped with a massive $4.3 billion penalty.
Conclusion
The hefty fine imposed on Binance by Canadian regulators underscores the increasing scrutiny of crypto exchanges worldwide. As governments seek to regulate the burgeoning crypto industry, companies like Binance will need to ensure compliance with local laws to avoid hefty penalties and potential market exit. The future of Binance in Canada remains uncertain, with the company’s return hinging on the establishment of favorable regulations.
