Binance Appeals $4.4 Million Fine by Canada’s FINTRAC for AML Violations
binance, a global cryptocurrency exchange, has officially appealed the $4.4 million fine imposed by the Canadian Financial Transactions and Reports Analysis Center (FINTRAC). The fine, handed down in May, accuses Binance of failing to comply with the rules prevention of money laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The appeal was filed with the Federal Court of Canada on June 5.
Binance Challenges FINTRAC’s $4.4 Million Fine in Court
FINTRAC’s action highlights alleged deficiencies in Binance’s operations, specifically their failure to register as a foreign exchange services business and their failure to report transactions exceeding $10,000. In its objection, Binance argued that its services were not targeted at Canadian residents. Additionally, the company announced its intention to withdraw from the market. Canadian market In May 2023, he cited the difficult regulatory environment as a critical reason for his decision.
This conflict with Canadian regulators is not an isolated incident. BinanceCompliance issues have sparked investigations in various jurisdictions. This demand in Canada underscores a broader challenge as the stock market navigates complex global regulatory frameworks.
Binance Wins Dismissal of Charges in Nigeria
Binance’s regulatory challenges extend beyond Canada’s borders. The exchange recently settled a major legal battle in the United States by reaching a $4.3 billion settlement with U.S. authorities. This settlement followed allegations similar to those made by FINTRAC and required Changpeng ZhaoThe then-CEO would resign after pleading guilty to a felony charge. Zhao is currently serving a four-month federal prison sentence.
To make things even more complicated, the U.S. Department of Justice Forensic Risk Alliance He will oversee Binance’s compliance measures for the next three years. This decision followed a controversial negotiation involving Sullivan & Cromwell, a law firm. FTX crashyou lose the monitoring role.
Binance continues to face operational challenges in addition to legal and regulatory hurdles. Earlier this year, two executives of the company were detained in Nigeria on charges of tax evasion and money laundering. This incident further complicates the company’s global operations and efforts to maintain a clean slate of regulations. But, NigeriaThe Federal Revenue Service (FIRS) dismissed the accusations against the exchange last week, marking a big win for Binance in Nigeria.
So read: Binance Co-Founder in Damage Control Mode Over Racist Meme Message
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
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