- KuCoin has appealed a Canadian penalty of over $14 million for allegedly failing to register and implement anti–money laundering controls.
- Canada‘s financial regulator FINTRAC claims KuCoin did not report nearly 3,000 large cryptocurrency transactions between 2021 and 2024.
- The exchange faces accusations of not flagging 33 suspicious transactions with potential links to money laundering or terrorist financing.
- KuCoin argues the penalty is too harsh and disputes its classification as a foreign money services business, according to a Federal Court appeal.
- Similar enforcement actions have occurred in Ontario, the United States, and potentially South Korea.
KuCoin, a Seychelles-based cryptocurrency exchange, is appealing a major enforcement action imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Canadian authorities fined KuCoin more than $14 million after accusing the company of failing to register as a money-services business and not having sufficient anti–money laundering measures.
According to FINTRAC, Peken Global Limited—operating as KuCoin—failed to report almost 3,000 large cryptocurrency transactions between 2021 and 2024. The regulator also stated the company did not flag 33 financial transactions where there were reasonable suspicions of money laundering or terrorist financing.
KuCoin confirmed it has appealed the decision with Canada’s Federal Court, challenging both the substance and procedures of the action. In a Thursday statement, the company said, “While KuCoin respects the decision-making process and remains committed to regulatory compliance and transparency, it disagrees with both the finding that KuCoin is a Foreign Money Services Business and the penalty imposed, which KuCoin maintains is excessive and punitive in nature.” The penalty was one of the largest FINTRAC has imposed, representing most of the $25 million in regulatory action by the agency in the past year.
FINTRAC described the alleged violations as serious, highlighting the failure to report suspicious transactions as “severe.” KuCoin has faced similar regulatory penalties in other jurisdictions. The Ontario Securities Commission fined the company in 2023, and in the United States, KuCoin settled with the Department of Justice earlier this year. That U.S. case led to KuCoin pleading guilty to operating without a license, agreeing to exit the U.S. market, and paying nearly $300 million.
Elsewhere, regulatory scrutiny continues, as indicated in reports that Korea-plans-sanctions-against-kucoin-others-report/” target=”_blank”>South Korea may also consider sanctions against KuCoin and others.
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