The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has fined Binance a hefty amount for failing to comply with the nation's anti-money laundering (AML) and anti-terrorist financing laws.

Binance is fined USD 4.3 million, a significant penalty that underscores the growing global regulatory focus on cryptocurrency exchanges.

Regulatory Scrutiny Intensifies

FINTRAC's press release detailed Binance's significant non-compliance, which included failure to register as a foreign money services business and neglecting to report cryptocurrency transactions over $10,000, a serious breach of the nation's AML and anti-terrorist financing laws.

Over a span of two years, from June 2021 to July 2023, Binance failed to report on 5,902 transactions exceeding $ 10,000, a significant period of non-compliance that has led to regulatory penalties.

"Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada's economy," said Sarah Paquet, Director and CEO of FINTRAC.

Binance's legal troubles extend beyond Canadian borders. The former CEO, Changpeng 'CZ' Zhao, was recently sentenced to four months in federal prison after pleading guilty to money laundering charges.

This development is part of a broader narrative in which Binance has found itself at odds with regulatory bodies worldwide, including the United States and Nigeria.

In response to mounting pressure, Binance has taken steps to exit markets that cannot meet regulatory standards, such as Canada and Nigeria.

Despite these setbacks, the exchange continues to face investigations and fines, indicating a critical transition period toward stricter compliance and transparency for the crypto industry.