In a new turn of events, Binance has revealed its intention to challenge the $4.4 million (about 6 million CAD) fine that the Canadian Financial Transactions and Reports Analysis Centre (FINTRAC) filed against it; the trading platform filed the appeal hearing in the Canada Federal Court on June 5, 2024, implying that court sessions will soon proceed.
For context, the exchange was charged earlier in May for failure to comply with the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws stipulated by the American country.
Earlier Accusations In May
Earlier in May, the FINTRAC accused the exchange of not registering as a Foreign Money Services Business (FMSB) and failing to report transactions worth more than $10,000 on its network.
On their official page on X, the regulatory body announced on May 9: “FINTRAC has imposed an administrative monetary penalty of $6,002,000 on Binance Holdings Limited, a foreign money services business.”
Arguments Supporting Move To Appeal The $4.4 Million Fine
Binance Exchange countered by asserting that its services were not for Canadian dwellers. Instead, they were operations on a global market scale.
In addition, the company drew attention to its initial statement earlier in May 2023 that Binance intends to vacate the North American nation because of the seemingly tight regulatory measures imposed by the country's authorities at that time.
Notably, the exchange admitted that while it had plans to establish its marketing operations in Canada, in honor of Changpeng Zhao, founder and former CEO of Binance Holdings Ltd, and a Chinese-born Canadian businessman, the regulatory landscape did not favor the plans. Hence, "Binance Canada" became a closed topic.
Meanwhile, the face-off between Binance and FINTRAC is just a microcosm of the exchange's growing challenge of meeting up with new regulatory measures emerging across several regions on a global stage. Binance's survival amid the worsening regulatory requirements underscores its commitment to ensuring it remains relevant despite the unfavorable conditions.