Binance woes in the face of regulatory compliance scrutiny take a new dimension with Canadian authorities slamming the exchange with a $4.4 million fine for defaulting anti-money laundering regulations in the North American Nation.
The newly imposed fine by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is coming barely a few months after the trading platform was slapped with a $4.3 billion penalty fee by the United States Department of Justice (DOJ).
Consequently, Binance will be bracing up for another round of legal dispute to clear its name of the new set of allegations levied against it by the FINTRAC.
Allegations Against Binance
According to the FINTRAC, Binance is liable for breaching two significant regulatory guidelines. Hence, the trading platform will pay a penalty fee of about six million Canadian dollars (C$6,002,000), a $4.4 million equivalent.
Highlighting the charges against Binance, the anti-money laundering agency claimed that the exchange offered its services to its Canadian customers without a prior identification as a foreign money service business with appropriate bodies in Canada despite several warnings.
Furthermore, the regulatory body faulted Binance for receiving its Canadian users' crypto despite opting for an earlier exit from the Canadian market.
In addition, the regulatory body disclosed Binance's failure to report receipts of significant crypto transactions with values above C$10,000. Per the FINTRAC, Binance did not report about 5,902 transactions that ensued on the trading platform between June 2021 and July 2023, having failed to conduct Know-Your-Customers (KYC) procedures for customers within the specified period.
Binance Woes Continues
The new directive from the Canadian authorities will undoubtedly compound Binance's difficult situation amid a series of legal disputes with regulatory agencies across several nations.
The trading platform is facing a similar situation in Nigeria after the West African nation accused the exchange of anti-money laundering and tax evasion. In the United States, Binance is also facing scrutiny from the United States Securities and Exchange Commission (SEC) for facilitating the sales of some crypto entities deemed to be security assets by the SEC.
