Key takeaways:
- Binance will pay FINTRAC an administrative monetary penalty of $4.4M for neglecting to register and report significant transactions involving digital assets.
- The regulator claims that Binance did not file for foreign money services or register or disclose transactions using digital currency over $10,000.
Binance will pay the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) an administrative monetary penalty of $4.4 million for neglecting to register and report significant transactions involving digital assets.
According to a warning sent by FINTRAC on May 9, Binance Holdings Limited did not follow anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements.
The regulator claims that Binance did not file for foreign money services or register or disclose transactions using digital currency over $10,000.
FINTRAC announced that Binance had been penalized 6,002,000 CAD, or almost $4.4 million. According to the regulator, As it closed down its business in Canada in 2023, Binance engaged in the acts that resulted in the penalties.
Citing regulatory concerns, Binance intends to exit the Canadian market in May 2023. Between June 2021 and July 2023, 5,902 distinct cryptocurrency transactions totaling $10,000 or more were recorded by FINTRAC on the exchange. As per FINTRAC:
“Binance Holdings Limited was provided with several opportunities to register with FINTRAC as an FMSB, however, they had not completed their registration by the deadlines provided,”
The $4.4 million fine was unrelated to any legal issues Binance has had or is currently having in other states. In November 2023, the business reached a settlement with US authorities, which included paying $4.3 billion in fines.
Changpeng Zhao “CZ” resigned as CEO as part of the agreement and entered a guilty plea to a single felony charge. After that, he received a four-month prison sentence.
On Thursday, the US DOJ engaged FRA to oversee Binance in adhering to rules for the next three years. FRA would have access to internal documents, facilities, and personnel, enabling it to provide the DOJ with regular updates on the company’s operations.
