Crypto exchange Binance has been slapped with a hefty fine of $4.4M by Canadian regulatory agency, FINTRAC.
According to the Financial Transactions and Reports Analysis Centre of Canada's report, the regulatory body levied this penalty against Binance for failing to adhere to its financial rules. Elaborating on the reason behind the huge fine, the agency revealed that Binance is held accountable for two major "administrative violations" of Canada's financial regulations.
The first reason was Binance's failure to register as a foreign money services business (FMSB) with the regulatory authority despite being provided with multiple opportunities to do so. This registration lapse reportedly persisted until September 25 2023, even as the exchange continued its operations within Canadian borders.
The second violation was centered around Binance's neglect to report nearly 6,000 crypto transactions exceeding $10,000 on their accompanying know-your-customer (KYC) information. These transactions went unreported between June 1, 2021, and July 19, 2023, as detected by FINTRAC through blockchain explorer tools.
The announcement came months after Binance agreed to pay a staggering $2.7B fine to the US authorities for violating anti-money laundering laws. The exchange is also entangled in legal battles with Nigerian financial regulators.
