• A fine of $6 million Canadian dollars was imposed on Binance by FINTRAC on May 9.
• This latest penalty will exacerbate the exchange's challenges in key regions.

Cryptocurrency exchange Binance is facing substantial sanctions from Canadian authorities following accusations of money laundering.

On May 9, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Binance $6 million Canadian dollars, which translates to $4.3 million. The exchange is being charged with offenses related to money laundering and terrorism funding.

On-Going Challenges

FINTRAC has accused the cryptocurrency exchange of breaching regulatory obligations in Canada. Binance failed to register as a foreign money service enterprise with the appropriate regulatory bodies before offering its services to Canadian clients.

Despite various reminders, FINTRAC condemned Binance for its lackadaisical approach to registration. Even after exiting the country last year, the exchange continued to accept cryptocurrency from Canadian users.

Additionally, Binance processed around 5,902 transactions amounting to approximately $10,000 CAD between June 1, 2021, and July 19, 2023. It is alleged that the exchange did not comply with Know-Your-Customer (KYC) protocols for these accounts.

After being fined $4.3 billion by the US Department of Justice (DOJ) in December 2023, this latest penalty appears to be another setback for the firm. The fine is expected to compound Binance's challenges in critical regions.

Reports in The Wall Street Journal (WSJ) have accused Binance of facilitating market manipulation on its platform. Both internal sources and records were cited as evidence. Binance has vehemently denied these allegations and reiterated its commitment to adhering to robust market surveillance procedures.

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