Canada Strikes Historic Penalty Coin in Crypto Exchange Breach
Canada's anti-money laundering agency has levied an unprecedented fine of C$19.6 million against Peken Global Limited, the operator of KuCoin, a major cryptocurrency exchange. This charge stems from failing to register and report significant transactions. KuCoin challenges the decision, describing it as excessively punitive.
In an unprecedented move, Canada's anti-money laundering agency has issued a record-breaking penalty of C$19.6 million to Peken Global Limited, the firm behind KuCoin, one of the globe's major cryptocurrency exchanges. Citing a failure to register as a foreign money services business and a lack of reporting on substantial virtual currency transactions, this decision marks a significant enforcement measure.
In response, KuCoin has contested the agency's decision, arguing in a statement that the penalty is both excessive and punitive. The company has filed an appeal with the Federal Court of Canada, asserting it should not be classified under Canadian law as a foreign Money Services Business.
The crackdown aligns with Canada's preparation for an evaluation by the Financial Action Task Force, an international financial crime watchdog based in Paris, slated for November. This forthcoming assessment will scrutinize Canada's mechanisms to combat financial crimes.
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