As an analyst with extensive experience in the cryptocurrency industry and a deep understanding of regulatory compliance, I believe that Binance’s appeal of the $6 million fine imposed by FINTRAC is not without merit. While it is true that Binance did not register as a foreign money services business in Canada and failed to report significant digital currency transactions as required by law, the company maintains that its involvement in the Canadian market was incidental to its global operations.
As a crypto investor, I’d rephrase it like this: Binance Holdings Ltd., the cryptocurrency exchange where I hold some investments, is disputing a $6 million penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The appeal, submitted to the Federal Court, argues against FINTRAC’s accusation that Binance functioned as an unregistered foreign money services business and failed to report substantial digital currency transactions.
As a crypto investor, I understand Binance’s stance in their appeal that they didn’t deliberately target Canadians, regarding their presence in our market as a byproduct of their global business. Last year, Binance disclosed their intention to leave the Canadian cryptocurrency scene due to regulatory issues.
As a crypto investor, I received the news on May 7, 2024, that Binance had been penalized by FINTRAC after a regulatory review in 2023 uncovered non-compliance with Canadian laws. Specifically, Binance failed to register as a foreign money services business and neglected to report virtual currency transactions exceeding $10,000 in a single transaction, as mandated by the law.
During a regulatory probe into the application of blockchain analysis tools, it came to light that Binance failed to disclose repeated transactions taking place between June 1, 2021, and July 19, 2023.
In reaction to the imposed fine, Binance lodged an appeal expressing our stance that we hadn’t intentionally offered our services to Canadians and that any transactions conducted in Canada didn’t hold significant weight for us. The announcement of our departure from the Canadian market in May 2023 was due to the regulatory ambiguities.
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2024-06-20 04:04