Regulators in Canada have reportedly fined Binance millions of dollars after the crypto exchange allegedly failed to comply with laws against money laundering and terrorist financing.
The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) is penalizing the world’s largest crypto exchange platform by volume after it failed to register as a foreign money services company, according to a new report from Reuters.
FINTRAC says it has fined Binance $4.38 million after it failed to report receiving crypto assets worth C$10,000 ($7,310) or more in 5,902 separate cases between June 1, 2021 and July 19, 2023.
Binance decided to leave Canada in May last year after saying it had problems with the country’s regulations on investor limits and stablecoins.
At the time, Binance said Canada’s new regulations made the market “no longer sustainable.”
“Unfortunately, new guidelines regarding stablecoins and investor limits for crypto exchanges mean that the Canadian market is no longer sustainable for Binance at this time.
We have delayed this decision as long as possible to explore other reasonable avenues to protect our Canadian users, but it has become clear that there are none.”
However, Binance said it would consider returning to Canada as the country has the right regulations. Also last year, Binance’s Canadian CEO Changpeng Zhao pleaded guilty in a US court to violating anti-money laundering laws.
Zhao was sentenced to four months in prison and Binance was hit with a massive $4.3 billion fine.
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