Binance, a cryptocurrency exchange, is facing a significant financial penalty from Canadian authorities due to allegations of money laundering. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Binance $6 million Canadian dollars ($4.3 million) on May 9. The charges against Binance include money laundering and terrorism funding.
The Canadian anti-money laundering agency accused Binance of neglecting its regulatory responsibilities in the country. Binance failed to register as a foreign money service firm with the relevant authorities before offering its services to Canadians. Despite receiving multiple warnings, Binance continued to accept cryptocurrency from Canadians even after leaving the country last year.
Additionally, FINTRAC criticized Binance for its lackadaisical approach to registration, citing numerous dates where the exchange failed to comply. Furthermore, Binance allegedly did not adhere to Know-Your-Customer (KYC) protocols for the associated accounts, with approximately 5,902 transactions totaling around $10,000 CAD conducted on the platform between June 1, 2021, and July 19, 2023.
This latest fine follows a $4.3 billion penalty imposed by the US Department of Justice (DOJ) in December 2023, further exacerbating Binance’s challenges in crucial regions. According to The Wall Street Journal (WSJ), Binance has also been accused of permitting market manipulation on its exchange platform. Insiders and internal records allegedly provided evidence to support these claims. However, Binance vehemently denies the allegations and reaffirms its commitment to operating under strict market monitoring regulations.
