Canada’s regulatory authority for combating money laundering, FINTRAC, has slapped a significant fine of nearly C$6 million (equivalent to $4.38 million USD) on the cryptocurrency exchange giant Binance.
This penalty stems from Binance’s failure to comply with Canadian laws regarding money laundering and financing terrorism.
According to FINTRAC, Binance neglected to register as a foreign money services business with the regulatory body, despite repeated reminders and deadlines. Moreover, it was discovered that Binance had omitted reporting instances where it received virtual currencies totaling C$10,000 or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023. Binance had ceased its operations in Canada the previous year.
This development comes shortly after Binance’s former CEO, Changpeng Zhao, received a four-month prison sentence for pleading guilty to violating U.S. anti-money laundering laws. In a separate agreement, Binance consented to a colossal $4.32 billion penalty, with Zhao personally paying a $50 million criminal fine and an additional $50 million to the U.S. Commodity Futures Trading Commission.
