Regulator Slaps Binance with Million-Dollar Fine
Canada’s financial regulator, FINTRAC, has fined Binance a hefty C$6 million ($4.4 million) due to alleged non-compliance with money-laundering protections, specifically failing to register as a foreign money services business and report virtual currency transactions.
Administrative Violations Uncovered
FINTRAC highlighted two main administrative violations committed by Binance:
- Failure to register with FINTRAC as a foreign money services business
- Not reporting large virtual currency transactions of $10,000 or more as required
These violations prompted FINTRAC to impose financial penalties on the crypto exchange.
Regulatory Breaches Exposed
According to FINTRAC, Binance had multiple chances to register as a foreign money services business but allegedly missed the deadlines provided. The exchange failed to complete the registration even when operating in Canada until September 25th, 2023, resulting in violations of registration requirements.
Using blockchain analytics, FINTRAC identified over 5,902 instances where Binance failed to report receiving $10,000 or more in virtual currency in a single transaction. These omissions breach anti-money laundering and terrorist financing regulations.
Binance’s Response to Compliance Issues
Despite facing mounting regulatory challenges, Binance is taking steps to enhance compliance:
- Appointing a new board of directors led by CEO Richard Teng
- Intending to establish a headquarters to meet regulatory demands for a physical presence
These measures aim to demonstrate the exchange’s commitment to compliance and a more robust organizational structure.
Market Impact and Token Surge
Following these regulatory developments, Binance’s native token, BNB, has seen a surge in value, reaching $598 with a 1.4% price increase in the past 24 hours.
By
By
By