Shock Fine: FINTRAC Hits KuCoin With $14M – What It Means for Crypto

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In the frost-bitten rooms where winter seems to linger longer than any appetite for reform, Canada’s stern registrar of coin and confession-FINTRAC-administered a penalty to Peken Global Limited, the operator of KuCoin. A sum, precise as a snowflake’s fall, stood at C$19.6 million, about $14.09 million, a consequence not merely of carelessness but of omissions that would scandalize any ledger left open to the cold air of accountability. One could almost hear the click of old securities and the sigh of a country that enjoys watching missteps in the currency’s quiet dance.

KuCoin has appealed the decision in a Canadian federal court. The exchange pleaded guilty to operating an unlicensed money-transmitting business in the US, and paid $300 million in fines and forfeitures. The global market, that restless beast with a thousand eyes, purrs and growls in equal measure as borders blur and rules multiply. 🤷‍♂️😂

KuCoin Hit With $14 Million Fine

Canada’s Financial Transactions and Reports Analysis Center (FINTRAC) has imposed a C$19.6 million ($14.09 million) penalty on KuCoin for failing to comply with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. FINTRAC stated that Seychelles-based Peken Global, the entity operating KuCoin, did not register as a foreign money services business, failed to report large virtual currency transactions of over C$10,000, and did not flag suspicious transaction reports as required by financial institutions operating in the country. It is all very cinematic-ledgers, thresholds, and the faint aroma of bureaucracy. The FINTRAC Director and CEO Sarah Paquet spoke with the gravity of a narrator who has witnessed many a rattle in the vaults.

“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy.”

Paquet added that while FINTRAC works with businesses to help them comply with laws, it will take appropriate action when needed. The tone suggests a balance between a helpful aunt and a magistrate with a ledger in her glove compartment. 🤚💼

“FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”

KuCoin Appeals Decision

KuCoin has appealed the decision, formally submitting an appeal before Canada’s Federal Court on substantive and procedural grounds. The exchange stated that it remains committed to transparency and regulatory compliance, but disagrees with FINTRAC that it is a Foreign Money Services Business and the penalty imposed on it. The exchange released a statement,

“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 appeal allows KuCoin to challenge the decision in a formal legal setting. KuCoin views this as a crucial step towards regulatory clarity and fair treatment of digital asset platforms. Meanwhile, the exchange has assured users they will see no change in its commitment to security, transparency, and services during the legal proceedings. KuCoin CEO BC Wong stated,

“KuCoin has always strived to work constructively with regulators worldwide. We disagree with this decision on both substantive and procedural grounds, and we have pursued all available legal avenues to ensure a fair outcome for KuCoin. As always, we remain fully committed to transparent operations and compliance with all applicable laws.”

KuCoin was founded in 2017 and is a leading global crypto platform serving over 40 million users across 200 countries. The scene of finance and freedom, with its clamor of numbers and nerves, continues to unfold-sometimes with a wry smile and the perpetual reminder that a single fine can feel like a frost across the lamp of progress. 🕯️💸

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2025-09-26 22:22