- Binance has been fined $6 million Canadian dollars by the FINTRAC on May 9.
- This new fine will make the exchange’s problems in crucial regions even worse.
Cryptocurrency exchange Binance is preparing to pay a hefty settlement to Canadian authorities after fresh charges of money laundering.
Binance was fined $6 million Canadian dollars by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) on May 9. This amount equals $4.3 million. Criminal charges including money laundering and terrorism funding were leveled against Binance.
Struggle Continues
The cryptocurrency exchange was accused by the Canadian anti-money laundering agency of failing to fulfill its regulatory duty in the country. Prior to providing its services to Canadians, it neglected to register as a foreign money service firm with the relevant authorities.
Furthermore, despite citing many dates, FINTRAC criticized Binance for its casual attitude towards registration. The exchange, on the other hand, kept receiving cryptocurrency from Canadians even after it left the country last year.
Moreover, approximately 5,902 transactions totaling approximately $10,000 CAD were conducted over the Binance platform between June 1, 2021 and July 19, 2023. Allegedly, the cryptocurrency exchange did not adhere to Know-Your-Customer (KYC) protocols for the associated accounts.
Following the $4.3 billion punishment levied by the US Department of Justice (DOJ) in December 2023, this fine seems to be the second slap on the firm. This new fine will make the exchange’s problems in crucial regions even worse.
According to recent reports in The Wall Street Journal (WSJ), Binance has been accused of allowing market manipulation on its exchange platform. Both insiders and internal records provided the information used to make the claims. The exchange, however, has denied the allegations categorically and reaffirmed its dedication to operating under stringent market monitoring rules.
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