September 25,2025
RED FM News Desk
Canada’s anti-money laundering watchdog has issued its largest-ever penalty, nearly $20 million, against the company operating cryptocurrency exchange KuCoin.
Fintrac said Thursday it fined Peken Global Ltd. $19.55 million on July 28 for violating Canadian money laundering laws. The Seychelles-based company, which runs KuCoin, has about 40 million users worldwide and handles more than US$9 billion in daily trades. It has appealed the decision to Federal Court.
According to Fintrac, the firm failed to register as a foreign money services business, did not report thousands of large virtual currency transactions, and neglected to submit suspicious transaction reports. The agency said this included almost 3,000 unreported transfers over $10,000 between 2021 and 2024, and 33 suspicious transactions linked to dark web markets and illegal digital platforms.
Agency head Sarah Paquet said the rules are designed to protect Canadians and the economy, and stressed that Fintrac works with businesses to encourage compliance. KuCoin, however, disputes the findings, arguing it should not be classified as a foreign money services business.
This is not KuCoin’s first clash with regulators. Earlier this year, the company pleaded guilty in the U.S. to operating an unlicensed money transmission business and agreed to pay over US$297 million in penalties, exit the U.S. market for two years, and bar two of its founders from management roles.
Founded in 2017, KuCoin operates in more than 200 countries and regions.
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