Canadian Regulator Fines Binance $4.3 Million for Regulatory Breaches
Binance, a prominent cryptocurrency exchange, faced a hefty C$6 million ($4.3 million) fine from Canadian regulators for alleged violations of financial regulations. FINTRAC, Canada’s financial intelligence unit, revealed that Binance failed to register as a foreign money services business and neglected to report nearly 6,000 transactions exceeding $10,000 between June 1, 2021, and July 19, 2023, along with their associated know-your-customer (KYC) information.
The regulatory breach was identified using blockchain explorer tools, highlighting the growing scrutiny over cryptocurrency transactions. This penalty follows Binance’s $4.3 billion settlement with U.S. regulators for violating anti-money laundering laws, as well as the recent legal troubles of its former CEO, Changpeng “CZ” Zhao, who received a four-month U.S. prison sentence for insufficient KYC/anti-money laundering measures.
Furthermore, Binance faces legal challenges in Nigeria, where it stands accused of money laundering and tax evasion. The arrest of Tigran Gambaryan, an American Binance executive charged with similar offenses, underscores the intensified regulatory pressure on the exchange. Binance’s CEO, Richard Teng, has called for Gambaryan’s release, revealing attempts of bribery to dismiss charges, amounting to $150 million, before his arrest.
