Binance Appeals Against $4.3M Penalty Imposed by Canada Regulator

Binance is contesting a $4.3m fine

levied by Canada’s financial intelligence agency, FINTRAC.

The exchange argued in its court appeal that it doesn’t target Canadian customers. It also claimed its Canadian activity is just a byproduct of its international operations, the Canadian Press reported June 19.

Binance says it previously attempted to establish a Canadian presence, but those plans fell through. In May 2023, it pulled out of the Canadian market altogether, citing new regulations around stablecoins and investor restrictions that made operating there unfeasible.

“Albeit a small market, it held sentimental value for us as the home country of our founder,” the exchange said at the time.

Canada Regulator Fines Binance for Non-Compliance

FINTRAC hit Binance with a $4.3m fine

in May for failing to comply with anti-money laundering and terrorist financing rules. The agency claimed that over a two-year period (June 2021 to July 2023), Binance failed to report single transactions of $10,000 or more on over 5,000 occasions.

Binance, despite having multiple chances to register as a money services business, missed all the deadlines the regulator had set, FINTRAC said.

Lawsuit, Global Fines for Regulatory Breaches

Binance also faces other legal troubles. In April, the exchange faced a class-action lawsuit in Canada, alleging violations of securities laws. Plaintiffs claim Binance sold crypto derivative products to everyday investors without proper registration, breaking Ontario’s Securities Act and federal regulations.

This lawsuit, seeking compensation and reversal of unauthorized trades, represents tens of thousands of Canadians who invested in Binance’s derivatives.

In November, Binance settled with US authorities for a $4b fine over violating anti-money laundering and sanctions laws.

Separately, the Indian Financial Intelligence Unit hit the exchange with a $2.24m fine, the largest ever levied against a crypto entity in the country for similar anti-money laundering compliance failures.