Binance, a major cryptocurrency exchange, has been fined $4 million by FINTRAC, a financial regulator in Canada, for violating the country’s laws on anti-money laundering and anti-terrorist financing. The Financial Transactions and Reports Analysis Centre of Canada announced the fine in a press release on May 9, stating that Binance had failed to register as a foreign financial service provider and neglected to report digital transactions exceeding $10,000 between June 2021 and July 2023.
It is worth noting that Binance had previously announced its exit from the Canadian market in May, citing new cryptocurrency legislation surrounding stablecoins. The Canadian Securities Administrators had implemented a ban on stablecoin deposits and purchases without prior approval.
Sarah Paquet, the director of FINTRAC, emphasized the importance of Canada’s regulations on Anti-Money Laundering and Anti-Terrorist Financing in safeguarding Canadians and the stability of the economy. She stated that FINTRAC will continue to assist businesses in understanding and fulfilling their obligations.
FINTRAC’s role is to ensure that entities operating in Canada comply with the Money Laundering and Terrorist Financing Act. The organization also collects and analyzes financial data to support law enforcement and national security efforts against money laundering and terrorism financing.
This latest development adds to Binance’s ongoing regulatory challenges. The company recently reached a settlement with the US Department of Justice, which involved the forfeiture of $2.51 billion and a fine. Binance’s Founder and former CEO, Changpeng Zhao (CZ), was penalized $50 million and required to resign as part of the agreement. CZ also received a four-month sentence after being found guilty of money laundering charges.
Furthermore, Binance is currently facing regulatory issues in Nigeria, where two of its representatives were arrested. The company is accused of violating Anti-Money Laundering laws and contributing to the devaluation of the country’s currency, the Naira. However, Binance CEO Richard Teng has accused Nigerian authorities of attempting to solicit bribes to close the case.
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