Binance Fined $4.3 Million by Canada’s FINTRAC

Binance Fined $4.3 Million by FINTRAC

Crypto exchange Binance is in hot water as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a hefty $4.3 million USD fine on the platform. The Canadian regulator cited violations of terrorist financing and money laundering laws in their recent announcement.

Administrative Monetary Penalties

According to a press release, Binance is required to pay $6,002,000 CAD in administrative monetary penalties. The penalties were issued due to Binance’s failure to register with FINTRAC as a foreign money services business and its negligence in reporting cryptocurrency transactions exceeding $10,000 within a single payment.

Violation Details

Between June 1, 2021, and July 19, 2023, Binance reportedly failed to report single transactions over $10,000 on 5,902 occasions. FINTRAC also mentioned that Binance missed multiple opportunities to comply with the regulator’s deadlines as a foreign money services business.

Regulatory Compliance Challenges for Binance

Binance has been under increased scrutiny regarding its compliance with cryptocurrency regulations. Former CEO Changpeng ‘CZ’ Zhao recently faced legal troubles, including a four-month federal prison sentence for money laundering charges. This incident underscores the importance of compliance in the cryptocurrency industry.

International Regulatory Pressure

With the recent charges from Canada and previous regulatory actions in Nigeria, Binance is facing growing international regulatory pressure. The Central Bank of Nigeria Governor revealed that $26 billion had flowed through Binance in 2023 alone from unidentified sources and users. These developments highlight the need for stricter compliance measures in the crypto space.