Binance, the popular cryptocurrency exchange, has lodged an appeal against the $4.4 million fine imposed on it by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) in May. The appeal was filed in Canada’s Federal Court system on June 5 and challenges the allegations of noncompliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations made by the director of FINTRAC. FINTRAC had announced the fine on May 9, citing violations such as Binance’s failure to register as a foreign money services business and report digital currency transactions exceeding $10,000.
Binance has stated in its appeal that it did not target its services towards Canadian residents. The exchange had previously disclosed its intention to exit the Canadian market by May 2023, citing regulatory issues as the reason. When contacted by Cointelegraph for comment, Binance did not respond.
It is worth noting that the FINTRAC fine is separate from the legal troubles Binance is facing in other countries. In November 2023, the company reached a $4.3 billion settlement with U.S. authorities, which resulted in the resignation of its then-CEO Changpeng Zhao. Zhao pleaded guilty to a felony charge and is currently serving a four-month prison sentence.
In February, two Binance executives were detained by Nigerian authorities on allegations of tax evasion and money laundering. Nadeem Anjarwalla, a British and Kenyan national, managed to escape custody and is currently in Kenya. Tigran Gambaryan, a former special agent with the U.S. Internal Revenue Service, reportedly contracted malaria during his detention in Nigeria.
In other news, Conor Daly, the driver for Polkadot’s Indy 500 team, revealed that his father holds DOT, the cryptocurrency associated with the Polkadot network.