The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a fine of $4.4 million to Binance for its failure to comply with regulations regarding the registration and reporting of large digital asset transactions.
In a notice released on May 9, FINTRAC stated that it had penalized Binance Holdings Limited for its noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The regulatory body revealed that Binance did not register as a foreign money services business and neglected to report digital currency transactions exceeding $10,000.
The penalty imposed on Binance by FINTRAC amounts to 6,002,000 CAD, which is equivalent to approximately $4.4 million at the time of the announcement. FINTRAC disclosed that Binance incurred this fine in 2023 while winding down its operations in Canada. Cointelegraph reached out to Binance for a comment, but no response was received at the time of publication.
Binance had previously announced in May 2023 that it intended to exit the Canadian market due to concerns over regulatory matters. According to FINTRAC, the exchange had carried out a total of 5,902 separate transactions involving crypto assets worth $10,000 or more from June 2021 to July 2023.
FINTRAC stated, “Binance Holdings Limited had multiple opportunities to register with FINTRAC as an FMSB, but they failed to complete their registration within the given deadlines. It is important to note that Binance Holdings Limited was considered an FMSB and was obligated to register with FINTRAC until September 25th, 2023, when it officially ceased all operations in Canada. Until that day, Binance Holdings Limited was in violation of its registration requirements.”
It is worth mentioning that the $4.4 million penalty is separate from the legal issues Binance has faced or is currently facing in other jurisdictions. In November 2023, the company reached a settlement with U.S. authorities, agreeing to pay $4.3 billion in penalties. As part of the deal, Changpeng Zhao stepped down as CEO and pleaded guilty to a felony charge. He was subsequently sentenced to four months in prison.
Additionally, in Nigeria, two Binance executives were arrested in February on charges of tax evasion and money laundering. While one of the individuals reportedly escaped to Kenya, Interpol has expressed its readiness to extradite him to Nigeria, where court proceedings are set to resume on May 17.
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