KuCoin Faces Record Anti-Money Laundering Penalty in Canada
- KuCoin, operated by Peken Global Limited, was fined over $19.5 million CAD ($14M USD) by Canada’s FINTRAC for anti-money laundering violations.
- This penalty is the largest ever imposed by FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
- The exchange failed to register as a foreign services money business and did not report large or suspicious transactions.
- KuCoin has appealed the decision in Canadian Federal Court, contesting both the classification and the penalty’s severity.
- In January, KuCoin paid nearly $300 million in fines for operating an unlicensed money-transmitting business in the U.S.
KuCoin is challenging a significant fine from Canada’s financial regulator for failing to comply with anti-money laundering regulations, marking it as the largest such penalty ever levied by FINTRAC. The exchange disputes its classification as a Foreign Money Services Business and plans to appeal in court.
Despite previous settlements in the U.S., KuCoin continues to face regulatory scrutiny internationally, highlighting ongoing compliance challenges for cryptocurrency exchanges globally. Source
