Canada Imposes C$19.6M Fine on KuCoin

Canada's financial intelligence agency FINTRAC imposed a C$19.5–19.6 million (nearly $14.1 million) penalty on Peken Global Ltd., the Seychelles-based operator of KuCoin — the largest fine FINTRAC has ever levied. FINTRAC found the firm failed to register as a foreign money services business, neglected to report large virtual-currency transactions of C$10,000 or more, and did not submit required suspicious-transaction reports. Using blockchain analysis, the agency said KuCoin failed to report 2,952 large transactions between June 1, 2021 and May 8, 2024 and omitted suspicious-transaction reports in 33 instances, including transfers tied to darknet marketplaces and a U.S.-designated Canadian company. The penalty was issued on July 28, 2025 as FINTRAC steps up enforcement ahead of an upcoming Financial Action Task Force audit. Peken Global has appealed to the Federal Court of Canada, calling the foreign‑MSB classification and the sanction "excessive and punitive" while saying it remains committed to compliance. The action follows earlier enforcement against KuCoin, including a U.S. settlement and Ontario sanctions, underscoring intensifying global oversight of major cryptocurrency exchanges.