Binance Gets $4.3M Fine by Canadian Regulator

Joshua Ramos
Binance Launches Megadrop: An Airdrops and Web3 Quests Platform
Source: Financial Times

Cryptocurrency exchange Binance received a $4.3 million fine from Canadian financial regulators on Thursday. Specifically, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) stated the exchange received ‘administrative monetary penalties’ regarding two separate violations committed in 2023.

The exchange is now required to pay the C$6 million penalty for “non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations,” the regulator said in a press release issued today.

Source: News

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Binance Gets $4.3M Fine for Administrative Violations in Canada

Since the final months of 2023, Binance has been facing a plethora of regulatory concerns. Indeed, the exchange had seen the United States levy a $4 billion fine on the platform after a years-long investigation. Thereafter, the company’s longtime CEO and co-founder, Changpeng Zhao, was forced to resign from his position.

Now, just six months later, the exchange is once again facing regulatory violation allegations. This time, Binance has been given a $4.3 million fine from Canadian financial regulators. The C$6 million penalty is reportedly due to administrative violations, according to FINTRAC’s statement on the matter.

Source – Binance

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The regulatory claims Binance had conducted two distinct violations in the country. According to FINTRAC, the exchange failed to “register with FINTRAC as a foreign money service business.” Moreover, they report the platform’s failure to “report large virtual currency transactions of $10,000 or more in the course of single transactions, together with the prescribed information.”

“FINTRAC will continue to work with businesses to help them understand and comply with her obligations,” FINTRAC director and CEO Sarah Paquet stated. “We will also be firm in ensuring that businesses continue to do their part, and we will take appropriate action when they are needed.”

This development occurs as Binance is currently embroiled in a regulatory conflict with Nigeria. The platform has seen two of the company’s executives detained in the country. That situation is connected with money laundering charges against the platform.