Binance Contests $4.4M FINTRAC Fine and Plans Canadian Market Exit Amid Global Legal Issues
Summary:
Binance, the cryptocurrency exchange, is contesting a $4.4 million fine by Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) for failure to comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. Also, Binance plans to exit the Canadian market, blaming regulatory hurdles. This issue exists alongside Binance's legal difficulties in other countries, including a $4.3 billion settlement in the U.S. and tax evasion allegations in Nigeria.
Binance, the cryptocurrency exchange, has lodged an appeal against a penalty of $4.4 million imposed by Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) in May. On June 5, Binance Holdings Limited officially lodged a statutory appeal in the Canadian Federal Court system against the FINTRAC director, disputing allegations of not adhering to the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. FINTRAC had slapped a fine of more than 6 million CAD, equivalent to roughly $4.4 million, on Binance on May 9, citing violations such as not registering as a foreign money services business and not reporting digital currency transactions above $10,000. In its appeal, Binance stated its services were not directed at Canadians. The exchange also revealed plans to withdraw from the Canadian market in May 2023, citing regulatory issues. Binance was asked for a comment by Cointelegraph, but did not respond before publication.
In a separate development, top Coinbase exec commented on Canada's lack of legislative discourse on cryptocurrency. Besides, Binance is entangled in legal disputes in several other countries as well. In November 2023, the company managed to settle for $4.3 billion with U.S. authorities, necessitating the resignation of CEO Changpeng Zhao. Zhao confessed to a felony charge and is currently serving a four-month sentence in a federal prison. Furthermore, in February, Nigerian authorities arrested two Binance executives on accusations of tax evasion and money laundering within the company. Nadeem Anjarwalla, a British-Kenyan national, evaded Nigerian detention and was reported to be in Kenya. Tigran Gambaryan, a former special agent of the U.S. Internal Revenue Service, contracted malaria during his arrestment period in Nigeria.
Published At
6/20/2024 12:25:20 AM
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