Canada Slaps Binance With $4.38 Million Fine for Violating Anti-Money Laundering and Terrorist Financing Laws
By Jace Dela Cruz
May 10, 2024 03:23 AM EDT
May 10, 2024 03:23 AM EDT
Canada's financial watchdog on Thursday imposed a fine of nearly C$6 million ($4.38 million) on crypto exchange giant Binance for violating anti-money laundering and terrorist financing laws.
According to Reuters, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said Binance failed to register as a foreign money services business with the regulatory body within the specified deadlines.
Additionally, the cryptocurrency exchange reportedly neglected to report receiving virtual currency valued at C$10,000 ($7,266) or more on 5,902 occasions between June 1, 2021, and July 19, 2023. Binance ceased operations in Canada last year.
Binance's former CEO, Changpeng Zhao, recently faced legal repercussions in the United States. Canada's fine comes weeks after Zhao pleaded guilty to violating anti-money laundering laws and was sentenced to four months in prison.
As part of the agreement with US authorities, Binance agreed to pay a $4.32 billion penalty, and Zhao paid a $50 million criminal fine plus a separate $50 million settlement with the US Commodity Futures Trading Commission.
READ MORE: US Seeks 36-Month Sentence for Binance Founder Changpeng Zhao
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