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News

Binance Financial Penalty In Canada Is $4.3 Million For Unregistered Operations

May 9, 2024 - Around 2 mins mins to read

Key Points:

  • Canadian regulators fined Binance $4.3 million for failure to register as a foreign money services business and report large cryptocurrency transactions.
  • The Binance financial penalty comes amidst a series of legal challenges for Binance, including a $4.3 billion fine in the U.S. and former CEO Changpeng Zhao’s prison sentence.
  • Binance faces regulatory scrutiny globally and has ceased operations in Canada, with ongoing legal battles in Nigeria over money laundering allegations.
Canadian regulators imposed a C$6 million ($4.3 million) fine on Binance, the world’s largest cryptocurrency exchange, alleging two separate violations of financial regulations.
Binance Financial Penalty In Canada Is $4.3 Million For Unregistered Operations

Binance Financial Penalty In Canada Comes With Other Challenges

According to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Binance failed to register as a foreign money services business despite multiple opportunities and neglected to report virtual currency transactions exceeding C$10,000. Between June 2021 and July 2023, Binance allegedly failed to report 5,902 crypto transactions over $10,000, along with their associated know-your-customer (KYC) information.

These violations were discovered using blockchain explorer tools. This Binance financial penalty closely follows its agreement to pay U.S. regulators a $4.3 billion fine for violating anti-money laundering laws and former CEO Changpeng “CZ” Zhao‘s four-month U.S. prison sentence for inadequate KYC/AML measures.

Binance Battles Regulatory Challenges Worldwide

Last year, Binance ceased operations in Canada, citing regulatory challenges. The exchange faces scrutiny from various regulators worldwide, including the U.S. Securities and Exchange Commission (SEC). Binance previously pleaded guilty to violating U.S. anti-money laundering laws and agreed to pay a hefty fine. Additionally, Binance is embroiled in legal battles in Nigeria, where it faces accusations of money laundering and tax evasion.

The Binance financial penalty by FINTRAC is part of Canada‘s efforts to enforce financial regulations. Notably, Toronto-Dominion Bank recently faced a C$9.19 million penalty for compliance failings related to monitoring and reporting suspected money laundering and terrorist financing.

Under Canada’s Proceeds of Crime and Terrorist Financing Act, administrative penalties aim to encourage businesses to improve compliance rather than punitive measures.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Binance

Binance Financial Penalty

Canada

FINTRAC

SEC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.