The renowned crypto giant Binance finds itself in hot water yet again, this time with a hefty $6 million penalty from Canada’s financial watchdog, FINTRAC. The fine, translated to USD4.38 million, comes as a consequence of Binance’s breach of Canada’s anti-money laundering and terrorist financing laws.
According to FINTRAC, Binance failed to register as a foreign money services business and neglected to report virtual currency transactions exceeding $10,000, violating crucial anti-money laundering regulations.
In a statement released by FINTRAC, Sarah Paquet, the director and CEO, emphasized the importance of these regulations in safeguarding Canadians and the nation’s economy. Paquet reiterated FINTRAC’s commitment to assisting businesses in compliance while asserting firm action against non-compliance.
This isn’t Binance’s first brush with regulatory trouble. In the US, founder Changpeng Zhao faced a four-month prison sentence for charges including money laundering and unlicensed money transmitting. The company also agreed to a massive $4.3 billion settlement in a federal case related to illicit activities.
The troubles extend to Nigeria, where Binance faces investigations for alleged foreign exchange rate manipulation and illicit operations. In a dramatic turn, Binance’s Regional Manager for Africa and Head of Financial Crime Compliance were charged with tax evasion and money laundering, with one of them managing to escape custody.
With regulatory scrutiny tightening globally, Binance finds itself navigating turbulent waters, facing significant fines and legal battles across multiple jurisdictions.