Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) has taken action against cryptocurrency exchange Binance, imposing a hefty fine of nearly USD 4.38 million (C$6 million) for violations related to money laundering and terrorist financing laws.

Canada Imposes Fines for Money Laundering Violations

The regulatory body disclosed that Binance had failed to comply with essential requirements, notably neglecting to register as a foreign money services business with FINTRAC despite multiple deadlines. Furthermore, it was revealed that the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term had neglected its obligation to report the receipt of virtual currency amounting to C$10,000 or more on a staggering 5,902 occasions. This concerning lapse in reporting occurred between June 1, 2021, and July 19, 2023.

Notably, Binance ceased its operations in Canada last year, raising questions about its compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with regulatory standards during its tenure in the country's cryptocurrency market. In response to queries regarding the fine and the violations, Binance remained silent, not providing an immediate comment to Reuters.

Canada fines Binance $4.38 million for money laundering violationshttps://t.co/SsAtIysJVP

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Founder Sentenced and Philippines Regulator Cracks Down

Earlier, Binance's Founder, Changpeng Zhao, received a four-month prison sentence for allowing money laundering on the exchange, as Finance Magnates reported. The sentence, handed down in a Seattle federal court, followed a deal with the US government in November, where Zhao agreed to step down as CEO to settle an investigation. Despite federal prosecutors seeking a three-year term, Zhao's sentence was lighter. He was convicted of failing to implement effective anti-money laundering programs, violating the Bank Secrecy Act.

Meanwhile, the Philippines' securities regulator has cracked down on Binance, instructing Google and Apple to remove the exchange's apps from their app stores. This move has come amid accusations of Binance offering unregistered securities to Filipino investors. The Securities and Exchange Commission emphasized the risk to investors' funds posed by Binance's presence, alleging that the exchange's apps facilitate illegal activities. The action follows findings that Binance promoted its services to attract funds from Filipinos without the requisite licensing.