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Canada’s anti-money laundering agency, FINTRAC, took a step to tighten regulatory control around the cryptocurrency sector by imposing a fine of approximately $4.4 million on one of the world’s largest cryptocurrency exchanges, Binance. This fine was a result of Binance’s failure to comply with anti-money laundering and terrorist financing laws.
Shocking Decision for Binance
Binance, neglected to register as a foreign money services company, a crucial requirement under Canadian law, and additionally, the exchange failed to report a significant number of incidents involving cryptocurrency investments of 10,000 Canadian dollars or more between June 1, 2021, and July 19, 2023.
Last year, Binance ceased its operations in Canada and has not yet commented on the penalty. This development came shortly after the imprisonment of Binance’s former CEO, Changpeng Zhao, who was sentenced to four months in prison for violating U.S. anti-money laundering laws. In a separate deal, Binance agreed to pay a massive fine of $4.32 billion, while Zhao personally paid a $100 million fine.
These recent actions against Binance underscore the increasing regulatory scrutiny facing the global cryptocurrency industry. Governments and institutions are accelerating efforts to ensure compliance with financial regulations, signaling a new accountability process for cryptocurrency exchanges.
