Binance and court session. Judicial hammer on the background of the logo. Source: Александр Поташев - stock.adobe.com

Key Takeaways:

Binance has appealed a $4.4 million fine from FINTRAC for AML and CFT noncompliance.
Violations include not registering as a foreign money services business and failing to report large digital currency transactions.
Binance claims it didn’t serve Canadian residents and exited the market due to regulatory challenges.

Binance, a cryptocurrency exchange, announced its exit from the Canadian market in 2023 but may still face enforcement actions from local regulators.

Binance has filed an appeal against a $4.4 million fine imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for alleged noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.

Cryptocurrency exchange Binance Holdings appealing $6M fine imposed by Fintrac https://t.co/hdFRQNbHBG
— CTV National News (@CTVNationalNews) June 19, 2024

The fine was issued for violations including failing to register as a foreign money services business and not reporting digital currency transactions exceeding $10,000.

Binance was fined C$6 million ($4.4 million) by Canada’s financial watchdog for breaching money-laundering protections. https://t.co/xa2C09ECkf
— Bloomberg Crypto (@crypto) May 9, 2024

Binance claims it did not offer services to Canadian residents and cited regulatory challenges as the reason for leaving the Canadian market.

🩸 Binance is in hot waters again!

This time, Canada’s financial intelligence unit, FINTRAC, is imposing a $4.4 million fine on #Binance.

FINTRAC said that it was penalizing Binance for:

– failing to register as a foreign money business
– failing to report large transactions…
— Satoshi Club (@esatoshiclub) May 10, 2024

This FINTRAC decision is separate from other international legal issues Binance faces.