Binance Appeals $4.4 Million Fine Imposed by FINTRAC

A $4.4 million fine imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has been appealed by cryptocurrency exchange Binance. Binance Holdings Limited filed a challenge against the FINTRAC director’s judgment on June 5 in Canada’s Federal Court. The complaint focused on the director’s claimed violation of legislation related to AML and CFT, or countering the financing of terrorism.

On May 9, the regulatory body declared that Binance had been penalized more than 6 million Canadian dollars, or around $4.4 million. Among the infractions were not reporting digital currency transactions over $10,000 and not registering as a foreign money services firm.

Binance’s Defense and Market Exit

In its appeal, Binance reportedly argued that it did not direct its services to Canadian residents. The exchange also pointed out its decision to exit the Canadian market in May 2023, citing the regulatory environment as the primary reason. Despite repeated attempts, Cointelegraph could not obtain a comment from Binance at the time of publication.

The FINTRAC fine adds to Binance’s growing list of legal troubles in multiple countries. In November 2023, Binance agreed to a $4.3 billion settlement with U.S. authorities. This settlement included the resignation of then-CEO Changpeng Zhao. Zhao pleaded guilty to one felony charge and is currently serving a four-month sentence in federal prison.