Binance Holdings Ltd. is contesting a $6 million fine imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for alleged violations of anti-money laundering (AML) regulations.
The appeal filed in Canada’s Federal Court challenges FINTRAC’s claim that Binance operated as a foreign money services business without proper registration and did not report significant digital currency transactions.
According to Bloomberg’s report, Binance, in its appeal, maintains that it did not specifically target Canadian residents and considers its involvement in the Canadian market as incidental to its global operations. Binance announced plans to withdraw from the Canadian market last year, citing regulatory concerns.
FINTRAC announced the penalty on May 9, 2024, following a compliance review in 2023 that found Binance breached several regulatory requirements. According to FINTRAC, Binance failed to register as a foreign money services business and neglected to report virtual currency transactions exceeding $10,000 in a single transaction, which is required under Canadian law.
In an investigation conducted by the regulator involving the use of tools to analyze blockchain, it was discovered that Binance did not report transactions multiple times between June 1, 2021, and July 19, 2023.
In response to the fine, Binance filed an appeal asserting its position that it did not target its services towards Canadians and that any business conducted in Canada was not substantial. The company’s exit from the Canadian market, announced in May 2023, was attributed to regulatory uncertainties.
Also read: Binance Double Down To Build User-Centric Technology
