Binance to appeal $4.4 million fine from Canadian regulator

Author: Turner Wright, Cointelegraph; Compiler: Baishui, Golden Finance

Cryptocurrency exchange Binance has appealed a $4.4 million fine imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in May.

Binance Holdings Ltd. filed a statutory notice of appeal against the Director of FINTRAC in the Federal Court system of Canada on June 5, alleging non-compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. The regulator announced on May 9 that it had fined Binance more than $6 million CAD (about $4.4 million USD) for violations including failure to register as a foreign money services business and failure to report digital currency transactions exceeding $10,000.

Binance reportedly said in its appeal that its services were not directly intended for Canadian residents. The exchange announced plans to exit the Canadian market in May 2023, citing a poor regulatory environment.

FINTRAC’s decision is unrelated to the legal troubles Binance has faced in other countries. In November 2023, the company reached a $4.3 billion settlement with U.S. authorities that required the ouster of then-CEO Changpeng Zhao. Zhao pleaded guilty to one felony charge and is currently serving a four-month sentence in federal prison.

In February, Nigerian authorities detained two Binance executives over allegations of tax evasion and money laundering at the company. British and Kenyan national Nadeem Anjarwalla escaped from Nigerian detention and was in Kenya at the time of publication. Former IRS agent Tigran Gambaryan reportedly contracted malaria while in custody in Nigeria.