- Binance has been slapped with a multi-million dollar fine in Canada.
- The fine comes about a year after the firm left the jurisdiction.
- The firm is also under scrutiny in several other jurisdictions.
Binance, the world’s largest crypto exchange by trading volume, can not seem to catch a break.
The crypto exchange’s years of operating in a regulatory gray area and eschewing traditional corporate practices appear to be catching up with it. In November 2023, the exchange was slapped with $4.3 billion in fines from the U.S. Department of Justice (DOJ) for money laundering violations.
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Now, the firm has been slapped with another fine, this time in Canada for similar violations.
Binance Slapped With $4.3M Fine
In a press statement on Thursday, May 7, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) disclosed that it had imposed an “administrative monetary penalty” of $6 million CAD or about $4.3 million USD on Binance for failing to comply with anti-money laundering and counter-terrorism financing rules.
According to the regulator, the crypto exchange failed to report transactions over $10,000 on the exchange. The fine comes nearly a year after the exchange disclosed that it was closing shop in the country, citing restrictive regulations related to “stablecoins and investor limits.”
A Global Noose Tightening?
Beyond the U.S. and Canada, Binance faces significant regulatory scrutiny in several other jurisdictions, including the Philippines and Nigeria. Regulators have moved to block the exchange’s online presence in the Philippines.
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In Nigeria, the firm faces charges of money laundering and tax evasion. The situation in Nigeria is further complicated by the arrest of the exchange’s Chief Financial Crime Compliance Officer, Tigran Gambaryan. The American has been held in the country for over two months and named in the charges against the exchange.
On the Flipside
- Despite its several regulatory challenges, Binance is still the largest crypto exchange in the world.
- Binance CEO Richard Teng has committed to steering the firm down the regulatory-compliant path.
Why This Matters
The recent fine Binance faces adds to the exchange’s growing regulatory troubles. At the same time, it is another signal of shifting industry dynamics compelling crypto exchanges to comply with regulations in their jurisdictions.
Read this for more on Binance’s history with Canada:
Binance Canada Exit Leaves Crypto Community Split
Follow Ethereum’s latest effort to improve wallet UX:
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