Bitrabo Editorial
Binance, the world’s leading cryptocurrency exchange, has been fined C$6 million ($4.4 million) by Canada’s financial regulator, FINTRAC, for allegedly failing to comply with anti-money laundering regulations related to registration and reporting.
Binance Faces Compliance Challenges
FINTRAC claims that Binance committed administrative violations by not registering as a foreign money services business and failing to report large virtual currency transactions as required by law.
Sarah Paquet, Director and CEO of FINTRAC, underlined the agency’s commitment to ensuring businesses understand and adhere to regulatory obligations, with strict actions taken against non-compliance.
Regulatory Failures
Binance allegedly missed several opportunities to register with FINTRAC as a foreign money services business and failed to meet registration deadlines, resulting in violations.
FINTRAC identified over 5,902 instances where Binance did not report receiving virtual currency amounts of $10,000 or more, contravening anti-money laundering regulations.
Despite regulatory challenges, Binance is focused on enhancing compliance by appointing a new board of directors led by CEO Richard Teng and plans to establish a physical headquarters to meet regulatory demands.
BNB, Binance’s native token, has surged to $598 amid these developments, with a 1.4% price increase in the last 24 hours.
Image source: Shutterstock, chart from TradingView.com