Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has imposed a fine of $4.38 million (CAD$6 million) on cryptocurrency exchange Binance. The regulatory body cites breaches of Canada’s anti-money laundering (AML) and terrorist financing laws.
Binanace’s Compliance Failures and Regulatory Violations
As reported by Reuters, FINTRAC says Binance failed to register as a foreign money services business with the intelligence body. The fine came after the exchange failed to comply despite multiple deadlines.
The agency also stated that Binance failed to report virtual currency transactions worth C$10,000 or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023. This series of violations ultimately led to the imposition of the multi-million dollar fine.
This action by Canada’s anti-money laundering agency adds to the growing regulatory scrutiny Binance has faced in multiple jurisdictions.Â
In Africa’s most populous nation, Nigeria, Binance is facing allegations of terrorism financing, money laundering and tax evasion. One of its executives, Tigran Gambaryan is currently in custody awaiting trial in court. The other Binance Executive, Nadeem Anjarwalla will likely face extradition by INTERPOL.
Binance Facing Global Scrutiny and Legal Consequences
Binance had ceased operations in Canada last year. This follows an increasingly stringent regulatory environment and its alleged breaches of financial regulations. The latest penalty imposed on the exchange comes amid regulatory woes dogging it.
Binance’s former CEO, Changpeng ‘CZ’ Zhao, was recently sentenced to four months in prison. This sentencing came after pleading guilty to violating U.S. anti-money laundering laws.Â
Additionally, Binance agreed to a $4.32 billion settlement with U.S. regulators, with an additional $50 million criminal fine and a further $50 million payable to the U.S. Commodity Futures Trading Commission (CFTC).
The only silver lining in recent activities of the exchange is the appointment of Binance General Manager Zhaslan Madiev as the Minister for Digital Development in Kazakhstan. BGEcrypto reported on how Madiev’s appointment into government marks a significant transition from the crypto world.
