Kucoin appeals a millionaire fine in Canada for registration failures and anti -salavado controls

By Hannah Pérez

The Transaction Analysis and Financial Reports Center in Canada (FINTRAC) issued a monetary sanction to Kucoin for USD $ 14 million, accusing it of breach of anti -salavado and terrorist financing standards.

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The Canada regulator, Fintrac, promotes a fine for USD $ 14 million to Kucoin.
It accuses the exchange of breaking the control of money laundering and terrorist financing.
Kucoin responded with an appeal before the Canadian court.
In a statement, Exchange said it disagrees “both substantive and procedural.”

Kucoin It has been beaten by a millionaire fine in Canada, but will not keep the crusaders.

Canadian financial regulator Fentrac has imposed a record sanction of 19.5 million Canadian dollars (about USD $ 14.1 million) to Peken Global Limitedthe operating entity of cryptocurrency exchange Kucoindue to serious breaches in the rules against money laundering and terrorism financing.

The fine, applied on July 28, 2025 but announced publicly on Thursday, has been immediately appealed by the company before the Federal Court of Canada, which qualifies the measure of “”Excessive and punitive“

FINCRAC issues record sanction

According to the official state statement, Peken Global Limited – A foreign monetary services company incorporated in Seychelles and with operations in Canada – violated Part 1 of the Crime Procedures Crimes Law (money laundering) and terrorism financing, as well as its associated regulations.

The identified administrative infractions include lack of registration as a foreign monetary services business, not reporting large cryptocurrency transactions for USD $ 10,000 and the omission in the presentation of suspicious transaction reports, when there were reasonable reasons to suspect that they were linked to crimes of terrorist washing or financing.

Canadian regulators emphasized the seriousness of these failures, which, they say, occurred on almost 3,000 occasions between 2021 and 2024 for large transactions, and in 33 specific cases of not reporting suspicious activities, classified as “severe“

Sarah Paquet, director and CEO of Fentrac, declared in the statement: “The Canadian regime to fight money laundering and terrorism financing is designed to protect the safety of Canadians and the integrity of Canada’s economy. FIntrac works with companies to help them understand and comply with their obligations under the law. We are also firm in ensuring that companies continue to fulfill their part and take the appropriate actions when necessary“

Kucoin appeals before Canadian court

Kucoinone of the main crypto exchanges with a volume of transactions of USD $ 53.6 billion in August, the decision flatly rejected. In a statement issued on Thursday, the platform argued to disagree “both substantive and procedural ” and questioned its classification as a foreign monetary services business.

“While Kucoin respects the decision -making process and remains committed to regulatory fulfill“, Reads the statement

The CEO of KucoinBC Wong, added in an X post: “We disagree with this decision both substantive and proceduraland we have persecuted legal routes presenting an appeal before the Federal Court of Canada to ensure a fair result for Kucoin“

It is not the first fine for Kucoin

This sanction represents most of the fines imposed by FIntrac in fiscal year 2024-25, a period in which the regulator issued 23 violation notices for a total of more than 25 million dollars-the highest number in its history-, and has accumulated more than 150 penalties since 2008 in various sectors.

It is not the first time that the platform faces regulatory scrutiny. In 2023, the Ontario Securities Commission (OSC) imposed compliance actions for operating without registration; At the beginning of 2025, he agreed with the US Department of Justice to pay almost USD $ 300 million after declaring himself guilty of operating without a license and committing to not return to the US market; And recently, South Korea announced sanctions plans against Kucoin and other cryptocurrency exchanges.

The appeal could extend the case for months, while Kucoin seeks to reverse the decision. For now, the regulator emphasizes that these fines seek to encourage change in non -compliant behaviors and strengthen the integrity of the Canadian financial system.

The native token of KucoinKCS, did not seem to be particularly affected. Although it registered a slight fall on Thursday, it has now risen 1.1% in 24 hours at a price of USD $ 0.07697, according to data from Coingcko at the time of editing.

Article written with the help of AI, edited by Diariobitcoin

Edited image of Unspash, with Kucoin logo

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