KuCoin Challenges $14M Canadian Penalty Over Registration, Compliance Issues

KuCoin is appealing a Canadian enforcement action for failing to register as a money-services business and not maintaining proper anti-money laundering measures, resulting in a penalty exceeding $19 million CAD ($14 million USD).

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed the fine on Seychelles-based Peken Global Limited, operating as KuCoin.
KuCoin allegedly didn't report large crypto transactions on nearly 3,000 occasions between 2021 and 2024 and failed to flag suspicious activities potentially linked to money laundering or terrorist financing 33 times.

KuCoin has submitted an appeal in the Federal Court of Canada, disputing both the finding that it is a Foreign Money Services Business and the size of the penalty, deeming it excessive and punitive.

This FINTRAC penalty constitutes a significant portion of the agency's fines over the past year, totaling $25 million CAD from 23 penalties.
Similar penalties have been imposed on KuCoin in other jurisdictions, including actions by the Ontario Securities Commission and a settlement with the U.S. Department of Justice involving a nearly $300 million USD fine.