Binance fined $4.4M by Canada's Anti-Money Laundering agency for violation

Binance, led by Richard Teng, committed the first infraction by neglecting to register as a foreign money services business (FMSB) in Canada.

Binance has been fined by Canada's anti-money laundering agency for breaking the nation's anti-money laundering regulations. FINTRAC investigated the largest bitcoin exchange in the world last year for not complying with regulations. Binance is now under disciplinary action due to CEO Changpeng Zhao being convicted and sentenced to four months in jail with a $100 million fine for confessing to breaking US anti-money laundering regulations.

In the wake of Binance's penalty, FINTRAC published a statement on Thursday outlining the infractions. The crypto exchange is being fined for breaking Canadian laws discovered during a compliance examination a year ago.

Binance, under Richard Teng's leadership, didn't register as a foreign money services business (FMSB) in Canada.

Binance Holdings Limited was considered an FMSB and had to register with FINTRAC until September 25, 2023, when it formally concluded its activities in Canada. Binance Holdings Limited had been in breach of its registration requirements up until that point.

Canadian anti-money laundering laws require cryptocurrency companies to report 5,902 accounts with large virtual currency transactions from 2021 to 2023. Binance is being investigated for failing to do so.

Binance has not publicly responded to the fine imposed by FINTRAC after they investigated potential violations of Canadian anti-money laundering laws.

In addition, the exchange is embroiled in a legal battle with Nigerian regulatory agencies. Last month, Nigerian authorities called Binance representatives and asked that the company open a physical location there.