Binance, the world’s largest cryptocurrency exchange, has been fined $4.4 million by Canada’s financial regulator, FINTRAC, for violating anti-money laundering rules.
Compliance Violations
FINTRAC found that Binance:
- Failed to register as a foreign money services business
- Failed to report virtual currency transactions of $10,000 or more
FINTRAC’s Response
FINTRAC’s CEO, Sarah Paquet, emphasized the importance of businesses complying with regulations to protect Canadians and the economy. She stated that FINTRAC will take appropriate actions when necessary to ensure compliance.
Regulatory Breaches
Binance had multiple opportunities to register with FINTRAC but allegedly failed to do so. Additionally, FINTRAC identified over 5,900 instances where Binance failed to report large virtual currency transactions.
Binance’s Response
Despite facing regulatory challenges, Binance has expressed its commitment to improving compliance. The exchange has appointed a new board of directors and plans to establish a headquarters to address regulators’ concerns.
Market Impact
Amidst these developments, Binance’s native token, BNB, has seen a surge in value, reaching $598.
