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- Binance has filed a statutory appeal against the $4.4 million fine imposed by the FINTRAC.
- The FINTRAC announced a more than 6 million CAD fine against Binance for allegedly violating AML and CFT regulations.
- The exchange argues that its services were not focused on Canadian citizens.
Binance, the world’s largest cryptocurrency exchange by trading volume, has formally appealed a multi-million dollar fine levied by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).
On May 9, 2024, FINTRAC issued a notice charging a penalty of more than 6 million CAD (approximately $4.4 million USD) against Binance for alleged noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The regulator specifically cited Binance’s alleged failure to register as a foreign money services business (FMSB) and report large transactions over $10,000 CAD. FINTRAC stated:
“Binance Holdings Limited was provided with several opportunities to register with FINTRAC as an FMSB, however, they had not completed their registration by the deadlines provided. It should be noted that Binance Holdings Limited was deemed to be an FMSB and was required to be registered with FINTRAC up until September 25th, 2023, when it officially ceased all operations in Canada.”
Notably, the FINTRAC alleged that the company failed to register as a foreign money services business and to report large transactions exceeding $10,000. FINTRAC added that Binance’s alleged violations were uncovered during a 2023 compliance review.
In May 2023, Binance had already announced its withdrawal from the Canadian market, citing an uncertain regulatory landscape. The platform described the market as “uncontrollable” due to evolving regulations.
In its appeal, Binance contends that its services were not primarily targeted towards Canadian citizens. The company asserts that while it had explored expanding operations in Canada, those plans never came to fruition.
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