Binance, one of the world's largest cryptocurrency exchanges, is set to appeal a $4.4 million fine levied by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The fine, imposed in May, stems from alleged noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.

On June 5, Binance Holdings Limited filed a notice of statutory appeal in Canada’s Federal Court system, contesting the director of FINTRAC's decision. The regulator had accused Binance of failing to register as a foreign money services business and not reporting digital currency transactions exceeding $10,000. The fine, amounting to over 6 million CAD, reflects the regulator’s stringent stance on financial compliance within the crypto sector.

In its appeal, Binance argued that it did not actively direct its services to Canadian residents. The exchange had announced its intention to exit the Canadian market in May 2023, citing the challenging regulatory environment as a primary reason. Despite this planned exit, Binance faces potential enforcement actions from local regulators. Cointelegraph reached out to Binance for a statement, but the company had not responded at the time of publication.

This regulatory issue in Canada is separate from Binance's other legal challenges worldwide. In November 2023, Binance agreed to a $4.3 billion settlement with U.S. authorities, which included the resignation of then-CEO Changpeng Zhao. Zhao pleaded guilty to a felony charge and is currently serving a four-month sentence in federal prison.

Further complicating Binance's global operations, Nigerian authorities detained two of the exchange’s executives in February over allegations of tax evasion and money laundering. Nadeem Anjarwalla, a British and Kenyan national, managed to escape custody and is reportedly in Kenya. Meanwhile, Tigran Gambaryan, a former special agent with the U.S. Internal Revenue Service, contracted malaria during his detention in Nigeria.

Despite these setbacks, Binance continues to navigate its way through the complex web of international regulations. The appeal against the FINTRAC fine highlights the ongoing tension between cryptocurrency platforms and regulatory bodies worldwide. As Binance challenges this latest penalty, the outcome could set significant precedents for how digital currency exchanges operate under varying regulatory frameworks.