by Jonathan Agozie 
FINTRAC revealed that Binance carried out 5,902 individual transactions of about $10,000 in crypto from June 2021 to July 2023 and failed to submit large virtual currency transaction reports.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a 6,002,000 CAD ($4.4 million) administrative monetary penalty on Binance. The penalty had been placed because the company failed to register and report large transactions in digital assets.
#FINTRAC has imposed an administrative monetary penalty of $6,002,000 on Binance Holdings Limited, a foreign money services business. For more information, consult the Centre’s website: https://t.co/x7KF5M3s2v pic.twitter.com/slFic4gJWo
— FINTRAC_Canada (@FINTRAC_Canada) May 9, 2024
FINTRAC said it imposed a penalty on Binance Holdings Limited for violations of money laundering and terrorist financing regulations. According to the regulator’s statement, Binance has failed to register as a foreign money services business and has neglected to report digital currency transactions that exceeded $10,000.
The regulator noted that Binance had an unconcerned attitude toward registration, despite several deadlines. Instead, the exchange left Canada last year and continued to accept cryptocurrency from Canadians. According to FINTRAC, Binance carried out 5,902 individual crypto transactions worth $10,000 or more on its exchange between June 2021 and July 2023. “Binance Holdings Limited failed to submit large virtual currency transaction reports with prescribed information,” reported FINTRAC.
Binance Griefs Persists
Recently, Binance has been encountering difficulties in its operations. According to CrptocurrenciesToWatch, two Binance executives were arrested in Nigeria over accusations of tax evasion and money laundering last February. The court proceedings regarding the case are scheduled to resume on May 17.
In late 2023, Binance pleaded guilty and agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money-transmitting business, and the International Emergency Economic Powers Act (IEEPA). “Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Secretary of the Treasury Janet L. Yellen.
As part of the agreement, Changpeng Zhao resigned from the Binance CEO position and pleaded guilty. He was later sentenced to four months in jail.
