Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Canada’s financial intelligence agency has fined the operator of KuCoin C$19.6 million (US$14.09 million), the largest anti-money laundering penalty in the country’s history.
Key Takeaways:
- Canada’s FINTRAC fined KuCoin a record C$19.6 million for failing to comply with anti-money laundering rules.
- The exchange is accused of neglecting to report nearly 3,000 large crypto transactions and 33 suspicious activity cases.
- KuCoin has appealed the ruling, calling the penalty “excessive.”
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said Seychelles-based Peken Global Limited, which operates the crypto exchange, failed to register as a foreign money services business and neglected to report nearly 3,000 large virtual currency transactions between 2021 and 2024.
The agency also cited 33 instances where the company failed to flag suspicious transactions potentially tied to money laundering or terrorist financing.
Canada Hits KuCoin with Record Fine Ahead of Key Global Financial Crime Audit
FINTRAC’s enforcement arrives ahead of a crucial audit by the Financial Action Task Force in November, as Canada faces international scrutiny over its financial crime safeguards.
KuCoin strongly denied the agency’s findings, calling the fine “excessive and punitive.” In a statement, the company said it has submitted an appeal to the Federal Court of Canada and disputed FINTRAC’s classification of it as a Foreign Money Services Business under Canadian law.
The fine levied against KuCoin accounts for the majority of FINTRAC’s enforcement actions over the past year.
The agency said it issued 23 penalties totaling $25 million during that period, with KuCoin’s violations described as particularly “serious” and in some cases “severe.”
This is not the first regulatory run-in for the crypto exchange. In 2023, the Ontario Securities Commission issued its own penalties against KuCoin for operating without registration.
Earlier this year, the company also settled with the U.S. Department of Justice for nearly $300 million, pleading guilty to running an unlicensed money services business and agreeing to cease operations in the United States.
The fine comes as Canadian authorities have confirmed the country’s largest cryptocurrency seizure to date, taking control of more than 56 million Canadian dollars (about $40 million) in assets from the little-known exchange TradeOgre.
The operation, carried out by the Royal Canadian Mounted Police (RCMP), dismantled the platform entirely, marking the first time Canadian law enforcement has shut down a cryptocurrency exchange.
Thailand Taps KuCoin for $153M Tokenized Bond Launch
Last month, Thailand’s Ministry of Finance chose KuCoin as its first official crypto exchange partner for the G-Token initiative, a blockchain-based, government-backed digital bond program.
KuCoin Thailand will join a consortium that includes XSpring Digital, SIX Network, and Krungthai XSpring to manage subscriptions, redemptions, and listings for the tokens, which are fully backed by the Thai baht and offer yields above typical bank rates.
The initial rollout involves 5 billion baht (approx. $153 million) in tokenized bonds, with a minimum investment of just $3, making government securities accessible to retail investors for the first time.
KuCoin will also advise on expanding the G-Token program internationally, pending regulatory approvals, which could see the bonds listed on global platforms.
Launched under Thailand’s Public Debt Management Act, the initiative marks a shift from traditional bond markets that historically favored institutions and the wealthy.
Backed 1:1 by fiat and approved in May, the G-Token program is part of a broader national effort to modernize public finance and democratize investment access using blockchain.
https://cryptonews.com/news/canada-fines-kucoin-14m-for-anti-money-laundering-failures/
