Binance Appeals Against Canada’s $4.4 Million Fine
Binance has officially filed an appeal against the $4.4 million fine imposed by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). The appeal, submitted on June 5th, is in response to accusations of noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
The fine was levied on Binance in May by FINTRAC for various violations, including the failure to register as a foreign money services business and report digital currency transactions exceeding $10,000. Binance, however, argues that its services were not specifically targeted towards Canadian residents. In light of the challenging regulatory environment, the exchange had already announced plans to withdraw from the Canadian market by May 2023.
This legal battle in Canada is just one of many regulatory obstacles that Binance is currently facing globally. The appeal against FINTRAC’s decision underscores the ongoing difficulties the exchange is encountering while trying to comply with complex regulatory frameworks on a worldwide scale.
Binance’s regulatory issues are not limited to Canada. In November 2023, the exchange reached a settlement with U.S. authorities for $4.3 billion due to similar AML and CFT violations. The settlement resulted in former CEO Changpeng Zhao stepping down after admitting to a felony charge. Zhao is currently serving a four-month federal prison sentence.
Additionally, in February, two Binance executives were detained by Nigerian authorities on charges of tax evasion and money laundering. One of the executives, Nadeem Anjarwalla, managed to escape custody and is now residing in Kenya. Tigran Gambaryan, a former U.S. Internal Revenue Service special agent who was also detained, contracted malaria during his time in custody. The Nigerian High Court dismissed Anjarwalla’s lawsuit against his detention on June 19th due to “want of diligent prosecution.” Gambaryan, on the other hand, has filed a separate lawsuit against the Nigerian authorities, with a hearing scheduled for July 9th.
Despite these significant challenges, Binance recently achieved a legal victory in Nigeria. The Federal Inland Revenue Service dropped the charges of tax evasion and money laundering against the exchange, marking a crucial triumph for Binance in the region.