KuCoin Appeals $14M Penalty for Canadian AML Violations

KuCoin, a major cryptocurrency exchange, has been fined a record C$19.6 million ($14.1 million USD) by Canada's financial intelligence agency FINTRAC for failing to comply with anti-money laundering (AML) regulations. The regulator accused KuCoin of not registering as a foreign money services business, failing to report nearly 3,000 large cryptocurrency transactions, and neglecting to file suspicious transaction reports between 2021 and 2024, violations deemed serious and severe. KuCoin denies the allegations, calling the penalty excessive and punitive, and has filed an appeal with the Federal Court of Canada, disputing both the findings and its classification under Canadian law. This penalty marks the largest AML fine in Canadian history and is part of FINTRAC's broader enforcement efforts ahead of an international financial crime audit. KuCoin has faced previous regulatory challenges, including penalties from the Ontario Securities Commission and U.S. regulators, but continues to emphasize its commitment to improving compliance. Despite the fine, KuCoin's operations and trading volumes remain robust, though its native token experienced a slight dip following the announcement.