- The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), a Canadian regulator, said on Thursday that cryptocurrency exchange Binance is facing a $4.3 million USD penalties for breaking rules pertaining to money laundering and terrorism funding.
- In a press statement, it was stated that Binance would be penalized $6,002,000 CAD for both failing to register as a foreign money services business with FINTRAC and failing to record cryptocurrency transactions totaling $10,000 or more in a single payment.
The regulator further stated that on 5,902 occasions between June 1, 2021, and July 19, 2023, Binance failed to record a single transaction valued at $10,000.
Furthermore, according to FINTRAC, the cryptocurrency exchange missed the deadlines set by the regulator despite having “several opportunities” to operate as a foreign money services provider.
According to Sarah Paquet, Director and CEO of FINTRAC, Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to safeguard both the security of the country’s economy and citizens’ safety. “FINTRAC will keep assisting firms in understanding and meeting their Act-related responsibilities.
Binance is Being Examined Closer for Complying with Crypto Regulations
In recent months, Binance has played a central role in a number of significant cryptocurrency regulatory initiatives. Changpeng “CZ” Zhao, the former CEO, admitted guilt to counts of money laundering a little more than a week ago and was given a four-month sentence in federal prison.Soon after learning of his sentence, Zhao wrote to X, saying, “Our industry has entered a new phase.”
In May of last year, Binance formally stated that it was discontinuing all of its activities in Canada, citing restrictions on cryptocurrency exchange investors and stablecoin guidelines in that nation. Following the arrest of two Binance executives for the company’s digital asset operations in Nigeria, the cryptocurrency exchange suspended operations in the country in March.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, asserted earlier this year that $26 billion had passed through Binance in 2023 alone, “from sources and users we cannot adequately identify.”
The revelation of Canada’s allegations against Binance, in addition to the crypto company’s case in Nigeria and Zhao’s legal troubles in the United States, may indicate a rise in worldwide regulatory pressure following a series of high-profile enforcement actions.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
