Binance Challenges $4.3 Million Penalty Imposed by Canadian Regulator
Binance, the popular cryptocurrency exchange, is appealing against a $4.3 million fine that was imposed by Canada’s financial intelligence agency, FINTRAC. The exchange argues that it does not specifically target Canadian customers and claims that its Canadian operations are merely a byproduct of its international activities. According to the Canadian Press, Binance stated in its court appeal that it had previously attempted to establish a presence in Canada but ultimately withdrew from the market in May 2023 due to new regulations and investor restrictions. The exchange expressed sentimental value for Canada as the home country of its founder.
Canada’s financial regulator, FINTRAC, fined Binance $4.3 million in May for non-compliance with anti-money laundering and terrorist financing regulations. FINTRAC alleged that over a two-year period from June 2021 to July 2023, Binance failed to report transactions of $10,000 or more on more than 5,000 occasions. Despite having multiple opportunities to register as a money services business, Binance missed all the deadlines set by the regulator, according to FINTRAC.
Binance is also facing additional legal challenges. In April, the exchange was hit with a class-action lawsuit in Canada, accusing it of violating securities laws. The lawsuit alleges that Binance sold crypto derivative products to everyday investors without proper registration, violating Ontario’s Securities Act and federal regulations. The lawsuit represents tens of thousands of Canadians who invested in Binance’s derivatives and seeks compensation and the reversal of unauthorized trades.
Furthermore, Binance reached a $4 billion settlement with US authorities in November for breaching anti-money laundering and sanctions laws. Additionally, the Indian Financial Intelligence Unit imposed a $2.24 million fine on Binance, the largest ever issued to a crypto entity in India, for similar failures in complying with anti-money laundering regulations.
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