Crypto Exchange KuCoin Hit With Record Anti-Money Laundering Penalty in Canada

Core Points - KuCoin, operated by Peken Global Limited, is facing a $14 million (over $19.5 million CAD) anti-money laundering penalty from Canada's FINTRAC, marking the largest penalty ever imposed by the agency [1][2] - The penalty was issued for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, specifically for failing to register as a foreign services money business and not reporting large virtual currency transactions above $10,000 CAD [2][3] - KuCoin has appealed the decision in Canadian Federal Court, arguing against the classification as a Foreign Money Services Business and the severity of the penalty [4][6] Regulatory Context - FINTRAC emphasizes the importance of compliance with anti-money laundering and anti-terrorist financing regulations to protect Canadians and the economy [2] - The agency works with businesses to ensure understanding and compliance with their obligations under the Act [3] Previous Legal Issues - In January, KuCoin pleaded guilty to operating an unlicensed money transmitting business in the U.S., resulting in nearly $300 million in fines and forfeitures [5][6] - Co-founders Chun Gan and Ke Tang were ordered to forfeit $2.7 million in cash and subsequently left the firm after the settlement [5]