Canada Fines KuCoin $14M for Anti-Money Laundering Failures
Canada’s monetary intelligence company has fined the operator of KuCoin C$19.6 million (US$14.09 million), the biggest anti-money laundering penalty within the nation’s historical past.
Key Takeaways:
- Canada’s FINTRAC fined KuCoin a report C$19.6 million for failing to adjust to anti-money laundering guidelines.
- The alternate is accused of neglecting to report practically 3,000 giant crypto transactions and 33 suspicious exercise instances.
- KuCoin has appealed the ruling, calling the penalty “extreme.”
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) mentioned Seychelles-based Peken Global Limited, which operates the crypto alternate, failed to register as a foreign money services enterprise and uncared for to report practically 3,000 giant digital forex transactions between 2021 and 2024.
The company additionally cited 33 situations the place the corporate did not flag suspicious transactions probably tied to cash laundering or terrorist financing.
Canada Hits KuCoin with Record Fine Ahead of Key Global Financial Crime Audit
FINTRAC’s enforcement arrives forward of a vital audit by the Financial Action Task Force in November, as Canada faces worldwide scrutiny over its monetary crime safeguards.
KuCoin strongly denied the agency’s findings, calling the superb “extreme and punitive.” In an announcement, the corporate mentioned it has submitted an enchantment to the Federal Court of Canada and disputed FINTRAC’s classification of it as a Foreign Money Services Business underneath Canadian legislation.
The superb levied towards KuCoin accounts for nearly all of FINTRAC’s enforcement actions over the previous 12 months.
The company mentioned it issued 23 penalties totaling $25 million throughout that interval, with KuCoin’s violations described as notably “critical” and in some instances “extreme.”
This shouldn’t be the primary regulatory run-in for the crypto alternate. In 2023, the Ontario Securities Commission issued its personal penalties towards KuCoin for working with out registration.
Earlier this 12 months, the corporate additionally settled with the U.S. Department of Justice for nearly $300 million, pleading responsible to working an unlicensed cash providers enterprise and agreeing to stop operations within the United States.
The superb comes as Canadian authorities have confirmed the country’s largest cryptocurrency seizure up to now, taking management of greater than 56 million Canadian {dollars} (about $40 million) in belongings from the little-known alternate TradeOgre.
The operation, carried out by the Royal Canadian Mounted Police (RCMP), dismantled the platform solely, marking the primary time Canadian legislation enforcement has shut down a cryptocurrency alternate.
Thailand Taps KuCoin for $153M Tokenized Bond Launch
Last month, Thailand’s Ministry of Finance chose KuCoin as its first official crypto exchange accomplice for the G-Token initiative, a blockchain-based, government-backed digital bond program.
KuCoin Thailand will be a part of a consortium that features XSpring Digital, SIX Network, and Krungthai XSpring to handle subscriptions, redemptions, and listings for the tokens, that are absolutely backed by the Thai baht and provide yields above typical financial institution charges.
The preliminary rollout entails 5 billion baht (approx. $153 million) in tokenized bonds, with a minimal funding of simply $3, making authorities securities accessible to retail buyers for the primary time.
KuCoin can even advise on increasing the G-Token program internationally, pending regulatory approvals, which might see the bonds listed on world platforms.
Launched underneath Thailand’s Public Debt Management Act, the initiative marks a shift from conventional bond markets that traditionally favored establishments and the rich.
Backed 1:1 by fiat and authorized in May, the G-Token program is a part of a broader nationwide effort to modernize public finance and democratize funding entry utilizing blockchain.
The put up Canada Fines KuCoin $14M for Anti-Money Laundering Failures appeared first on Cryptonews.
