KuCoin has filed a Federal Court appeal after receiving a $14 million FINTRAC anti-money laundering penalty for registration and reporting failures; the exchange disputes the finding that it is a Foreign Money Services Business and says the sanction is excessive.
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KuCoin fined $14M by FINTRAC for AML compliance lapses
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Exchange appeals the decision on substantive and procedural grounds to Canada’s Federal Court
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Earlier U.S. settlement: nearly $300M in fines and forfeitures for unlicensed money transmission
KuCoin FINTRAC penalty news: KuCoin appeals $14M FINTRAC fine in Federal Court — read details and next steps in regulatory review. Stay informed.
What is the KuCoin FINTRAC penalty and why did the exchange appeal?
The KuCoin FINTRAC penalty refers to a $14 million administrative monetary penalty issued by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) for alleged failures to register and report virtual currency transactions. KuCoin appealed to the Federal Court of Canada, arguing both procedural and substantive errors and that the penalty is excessive.
How did FINTRAC characterize the compliance failures?
FINTRAC said Peken Global Limited, operating as KuCoin, did not register as a Foreign Money Services Business, failed to report transactions above CAD $10,000, and omitted suspicious transaction reports despite grounds to file them. FINTRAC framed the action under Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
When was the penalty issued and what precedents apply?
FINTRAC announced the penalty in July 2025; it is described as the largest administrative penalty the agency has imposed. The exchange faces regulatory scrutiny alongside prior enforcement actions — notably a January U.S. settlement where KuCoin pleaded guilty to unlicensed money transmission and agreed to almost $300 million in fines and forfeitures.
What factual background should readers know?
Peken Global Limited, the Seychelles-based operator of the KuCoin exchange, received the administrative monetary penalty in July 2025. FINTRAC’s statement emphasized Canada’s anti‑money laundering regime aims to protect Canadians and the national economy. KuCoin stated it disagrees with the finding that it is a Foreign Money Services Business and called the penalty excessive.
How does this compare to prior enforcement actions?
In January 2025 KuCoin resolved U.S. enforcement by pleading guilty to operating an unlicensed money transmitting business and agreeing to nearly $300 million in fines and forfeitures. Two co‑founders were ordered to forfeit cash and subsequently exited the firm.
| Jurisdiction | Entity | Penalty (USD equivalent) | Primary finding |
|---|---|---|---|
| Canada (FINTRAC) | Peken Global Limited / KuCoin | $14,000,000 | Failure to register and report |
| United States (DOJ/US authorities) | KuCoin | ~$300,000,000 | Unlicensed money transmission; guilty plea |
Frequently Asked Questions
Did KuCoin accept the FINTRAC findings?
No. KuCoin issued a public statement disputing both the designation as a Foreign Money Services Business and the size of the penalty, and has pursued legal remedies in the Federal Court of Canada.
Who commented on the FINTRAC action?
FINTRAC Director and CEO Sarah Paquet issued a statement stressing enforcement is necessary to protect Canadians. KuCoin representatives and a company executive (BC Wong) publicly stated the exchange will appeal.
Key Takeaways
- Major enforcement: FINTRAC imposed a $14M administrative penalty for AML reporting and registration failures.
- Legal challenge: KuCoin launched a Federal Court appeal contesting both process and substance.
- Regulatory context: This follows a significant U.S. settlement earlier in 2025, highlighting intensified global scrutiny of crypto platforms.
Conclusion
KuCoin’s appeal of the FINTRAC penalty marks a significant test of how Canadian AML rules apply to foreign crypto platforms. COINOTAG will monitor court filings and provide updates as the Federal Court reviews the exchange’s procedural and substantive arguments. Readers should watch for judicial rulings that could shape cross‑border crypto compliance.
Publication: COINOTAG — Published: 2025-09-25 — Updated: 2025-09-25
Sources mentioned in reporting: FINTRAC public release, public statements by KuCoin, Reuters reporting, U.S. court settlement documents (plain text references only).
