Canadian Financial Regulator Slaps Binance with $4.3M Fine for 'Administrative Violations'
Is Binance in Hot Water Again?
On Tuesday, Canadian regulators have slapped Binance, a major cryptocurrency exchange, with a hefty fine of C$6 million ($4.3 million). The fine is for two alleged rule breaches under Canada's financial regulations.
Alleged Breaches
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which oversees financial activities, claims that Binance failed to register as a foreign money services business despite being given several chances to do so. Additionally, the exchange supposedly didn't report 5,902 cryptocurrency transactions over $10,000, along with the required customer information, between June 1, 2021, and July 19, 2023. These violations were uncovered by FINTRAC using special blockchain tools.
Comparison to U.S. Penalties
This Canadian penalty comes shortly after Binance agreed to pay a huge $4.3 billion fine to U.S. authorities for breaking anti-money laundering laws. Recently, the former CEO of Binance, Changpeng "CZ" Zhao, was sentenced to four months in a U.S. prison for failing to establish proper customer verification and anti-money laundering systems.
Global Regulatory Challenges
Besides dealing with regulators in Canada and the United States, Binance is facing legal issues in Nigeria. There, it's accused of involvement in money laundering and tax evasion, especially concerning transactions in Nigerian currency. In February, Tigran Gambaryan, a top Binance executive responsible for financial compliance, was arrested and charged with similar offenses.
Binance's recent troubles with regulators highlight the increasing scrutiny faced by cryptocurrency exchanges worldwide. These events emphasize the importance of adhering to financial regulations in the cryptocurrency industry and the potential repercussions for failing to do so.
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