Binance faces $4.4 million fine in Canada for violating these laws

Binance has been fined by the Canadian Anti-Money Laundering Agency for violating the country’s anti-money laundering laws. The world’s largest crypto exchange was investigated by the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) for violations last year. The action against the company comes soon after CEO Changpeng Zhao was sentenced to four months in jail and directed to pay a fine of $100 million (approximately Rs 100 crore) after pleading guilty to violating US anti-money laundering laws. Has been done later.

FINTRAC issued a Thursday statement Following the punitive action on Binance. The post revealed that the crypto exchange is being fined for violating two Canadian regulations that were identified during a compliance activity last year.

In its first violation, Binance, headed by Richard Teng, has been accused of failing to register itself as a foreign exchange services business (FMSB) in Canada. “It should be noted that Binance Holdings Limited was considered an FMSB and was required to be registered with FINTRAC until September 25, 2023, when it officially ceased all operations in Canada. “As of that day, Binance Holdings Limited was in violation of its registration requirements,” the statement said.

Meanwhile, Binance is also facing action for failing to report 5,902 accounts of large virtual currency transactions between 2021 and 2023, as crypto firms are required to do in Canada under anti-money laundering laws. .

“Binance failed to report the receipt of an amount of $10,000 (approximately Rs 8.5 lakh) or more in virtual currency from a customer during a single transaction, as well as prescribed information that occurred on 5,902 separate occasions during the period. From June 1, 2021 to July 19, 2023,” FINTRAC said in its statement.

Binance has not yet publicly responded to the fine imposed by FINTRAC following an investigation into violations of anti-money laundering regulations in Canada.

The exchange is currently embroiled in a legal tussle with regulatory authorities in Nigeria. Nigerian authorities summoned Binance officials last month and asked the company to set up a physical office in the country.