FINTRAC Fines Crypto Exchange Binance $4.38M for Failing to Register and Report Transactions in Canada

News | May 23, 2024 By:

On Thursday, May 9, 2024, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced it had levied a 6 million Canadian dollar ($4.38 million) fine against major cryptocurrency exchange Binance.

FINTRAC stated that Binance had failed to register as a money services business with FINTRAC and failed to report over 5,900 transactions of over $10,000 Canadian dollars that occurred on its platform between June 2021 to July 2023.

As Canada’s financial intelligence unit, FINTRAC is responsible for overseeing compliance with the country’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. All cryptocurrency exchanges and money services businesses must register with FINTRAC and report large transactions to help detect and prevent money laundering and financing of illegal activities.

However, FINTRAC said that despite being given multiple opportunities to register, Binance did not comply with its reporting obligations until exiting the Canadian market in September 2023. FINTRAC identified the unreported transactions using blockchain analytics, the technology underlying cryptocurrencies like Bitcoin that allows all transactions to be tracked on a public ledger.

FINTRAC Director Sarah Paquet commented that while the agency works with businesses to understand compliance requirements, it will take enforcement action when needed to ensure firms do their part to combat financial crimes.

This latest fine against Binance follows a series of previous penalties by regulators globally for anti-money laundering violations at the cryptocurrency exchange.