The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has levied a significant fine of $4.4 million against cryptocurrency exchange Binance for purported violations of anti-money laundering regulations.

FINTRAC's investigation revealed two primary infractions: Binance's failure to register as a foreign money services business and its neglect to report substantial transactions in virtual currency. Specifically, Binance allegedly omitted declarations of transactions exceeding $10,000 on 5,902 occasions between June 2021 and July 2023.

The regulator asserts that Binance is deemed a foreign money services business, imposing an administrative monetary penalty of $6,002,000 on Binance Holdings Limited for these violations.

Utilizing blockchain analytics, FINTRAC identified Binance's failure to report virtual currency transactions as a critical lapse in maintaining transparency within the financial system. This penalty follows regulatory scrutiny Binance faced in the United States, where the Department of Justice reached a plea deal in November 2023, resulting in a $4 billion settlement for alleged money laundering and sanctions violations.

As part of the settlement, Binance's founder and former CEO, Changpeng Zhao, agreed to step down and pay a $50 million fine. Zhao subsequently received a four-month prison sentence after pleading guilty to violating anti-money laundering regulations.

Conclusion:
FINTRAC's fine against Binance underscores the increasing regulatory scrutiny faced by cryptocurrency exchanges worldwide. The penalty highlights the importance of compliance with anti-money laundering regulations and serves as a reminder of the consequences for failing to uphold transparency standards in the financial sector.