In a move that further tightens the regulatory grip around the cryptocurrency sector, Canada’s anti-money laundering agency, FINTRAC, has slapped a hefty fine of nearly C$6 million on Binance, one of the world’s largest cryptocurrency exchanges. The fine, amounting to approximately $4.38 million USD, comes as a result of Binance’s failure to comply with money laundering and terrorist financing laws.
Despite several deadlines, Binance neglected to register as a foreign money services business with FINTRAC, a crucial requirement under Canadian law. Additionally, the exchange failed to report receiving virtual currency worth C$10,000 or more on a staggering 5,902 occasions between June 1, 2021, and July 19, 2023.
Binance, which ceased its operations in Canada last year, has yet to comment on the fine. This development follows closely on the heels of the imprisonment of Binance’s former CEO, Changpeng Zhao, who was sentenced to four months for violating U.S. money laundering laws. In a separate agreement, Binance agreed to pay a massive $4.32 billion penalty, with Zhao personally shelling out $100 million in fines.
These recent actions against Binance underscore the growing regulatory scrutiny facing the cryptocurrency industry globally. Governments and agencies are stepping up efforts to ensure compliance with financial regulations, signaling a new era of accountability for cryptocurrency exchanges.
(Source: CNA | The Globe and Mail | MSN)
