Regulation
Binance files appeal for $4.4 million fine with Canadian regulator FINTRAC
Cryptocurrency exchange Binance has filed an appeal, challenging the $4.4 million penalty previously imposed by Canada’s regulatory watchdog, the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).
According to a June 19 Bloomberg Canada reportThe foreign exchange giant said in its appeal to the Federal Court that it had no presence in the country and its services were not targeted to those in Canada, saying any involvement in the Canadian market was linked to its global operations.
Additionally, Binance highlighted that it had previously planned to establish operations in Canada, but that plan did not come to fruition. Recall that in May 2023, Binance announced that it had left the Canadian market due to increased regulatory concerns and investor restrictions. At the time, the exchange highlighted the relevance of having a presence in Canada, emphasizing that it is the country of origin of Changpeng Zhao, the founder.
Binance fined $4.4 million for regulatory violations
In May, Canada’s financial intelligence agency FINTRAC fined Binance approximately CAD 6 million ($4.4 million) for violating anti-money laundering laws. According to the agency, Binance failed to register as an international money services business, adding that the exchange also failed to report substantial transactions from over $10,000 to over $5,000. repeated over two years, from June 2021 to July 2023.
The regulatory agency also pointed out that Binance missed all deadlines set for official registration, even though it had several chances to do so.
Binance Global Regulatory Issues
Meanwhile, Binance, the largest cryptocurrency exchange by trading volume, continues to face regulatory challenges around the world, raising concerns about the company’s authenticity. Earlier today, Reported coinfomania that the company was fined $2.25 million by India’s Financial Intelligence Unit (FIU) for violating anti-money laundering regulations.
The agency said Binance did not properly register before operating in the country. According to the official document published, Binance did not provide the contact details of the main official to the FIU, did not put in place any mechanisms to detect suspicious transactions (ST) and did not inform the transaction monitoring body suspicious.
In November 2023, the exchange settled over $4 billion with US authorities, prompting Changpeng Zhao, the CEO at the time, to resign from his position and is currently serving a four month sentence in a federal prison.
Notably, the exchange is also facing regulatory issues in Nigeria. Two Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, have been arrested by Nigerian authorities for tax evasion and money laundering within the company.