Binance has been fined by Canada’s anti-money laundering agency for violating the country’s anti-money laundering laws. The world’s largest crypto exchange was previously scrutinized by the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) for regulatory violations last year. The action against the company came shortly after CEO Changpeng Zhao was sentenced to four months in prison and ordered to pay a fine of $100 million (around Rs. 835 crore) after pleading guilty to violated US anti-money laundering laws.
FINTRAC published a statement following punitive action against Binance. The post revealed that the crypto exchange was fined for violating two Canadian rules identified during compliance activities last year.
In its first offense, Binance, led by Richard Teng, was accused of failing to register as a foreign money services business (FMSB) in Canada. “It should be noted that Binance Holdings Restricted is considered an FMSB and must be registered with FINTRAC until September 25, 2023, when it will officially cease all operations in Canada. “To date, Binance Holdings Restricted has violated its registration requirements,” the statement said.
Meanwhile, Binance also faces prosecution for failing to report 5,902 accounts of large digital currency transactions between 2021 and 2023, as is expected of crypto companies in Canada under anti-money laundering laws. ‘money.
“Binance failed to report receipt by its customers of digital currency amounts of $10,000 (approximately Rs. 8.5 lakh) or more in a single transaction, as well as specified information which occurred on 5,902 occasions distinct during the period. “From June 1, 2021 to July 19, 2023,” FINTRAC specifies in its press release.
Binance has not publicly responded to the fine imposed by FINTRAC following an investigation into violations of anti-money laundering regulations in Canada.
The exchange is currently embroiled in a legal dispute with Nigeria’s regulatory authorities. Nigerian authorities summoned Binance authorities last month and asked the company to open a physical office in the country.
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