Reportedly, Binance, a prominent crypto exchange, has been fined millions of dollars by Canadian regulators due to alleged non-compliance with anti-money laundering and terrorist financing regulations.
According to a recent Reuters report, The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is imposing a penalty on the world’s largest crypto exchange platform by trading volume for failing to register as a foreign money services business.
FINTRAC stated it fined Binance $4.38 million for failure to report receiving crypto assets worth C$10,000 ($7,310) or more on 5,902 separate occasions between June 1st, 2021, and July 19th, 2023.
Binance opted to exit the Canadian market in May of the previous year, citing concerns with the country’s regulatory framework regarding investor limits and stablecoins.
Explaining its decision, Binance stated that Canada’s new regulations had made its market untenable.
“Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time. We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”
Nevertheless, Binance expressed willingness to reconsider its stance on Canada if the country establishes suitable regulations. Additionally, in the previous year, Changpeng Zhao, Binance’s Canadian CEO, pleaded guilty in a US court to violating anti-money laundering laws.
Zhao received a four-month prison sentence, and Binance was issued a substantial penalty of $4.3 billion.
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