Canada’s official financial intelligence unit, FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, has fined KuCoin, one of the most prominent cryptocurrency exchanges, with C$19.5 million ($14 million) for breaching anti-money-laundering (AML) regulations.
FINTRAC officially released a press release and stated that they had imposed an administrative monetary penalty on Peken Global Limited, also operating as KuCoin. The press release also reported that this Seychelles-incorporated foreign money services business operating in Canada had been imposed a penalty of $19,552,000 on July 28, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.
According to the press release, Peken Global Limited, also operating as KuCoin, failed to register with FINTRAC as a foreign money services business, failed to report large virtual currency transactions of $10,000 or more in the course of a single transaction, and failed to submit suspicious transaction reports. KuCoin officially confirmed the fine through an official statement and reported that it had received a decision from the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) upholding a Notice of Violation issued on March 31, 2025.
They disagreed with the penalty and acknowledged that they respect the decision-making processes and regulatory compliance that enhance the transparency of the sector. As a response to the penalty, the cryptocurrency exchange has officially submitted an appeal before the Federal Court of Canada on both substantive and procedural grounds. Apart from appealing, the exchange opposed that the platform does not meet the Canadian money-services business’s definition, so it is not required to register with FINTRAC.
Canada Hits KuCoin Ahead of Financial Action Task Force (FATF) Mutual Evaluation
The Financial Action Task Force (FATF), the agency responsible for the oversight of the global anti-money laundering and counter-terrorist financing activities, has scheduled its mutual evaluation in association with Canadian authorities for late 2025. This international assessment will measure how effectively the country is implementing anti-financial crime standards.
The $19.5M fine imposed on KuCoin ahead of this evaluation makes people think that there might be some strict evaluation and regulatory actions in the upcoming days. FINTRAC has already been monitoring the regulated businesses for compliance with anti-money-laundering and counter terrorist financing obligations. The financial intelligence unit claimed that between 2021 and 2024, KuCoin failed to report around 3,000 large transactions involving various cryptocurrencies.
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Along with that, the regulators have also found out another 33 separate instances where KuCoin failed to provide enough information regarding their suspicious activity. These regulatory lapses and alleged scenarios linked to criminal and terrorist networks placed the exchange in a difficult situation. The fine will be a temporary punishment, and they might end up in a worse situation if and when they are proven guilty.
KuCoin has previously faced regulatory action in Canada. In 2022, the Ontario Securities Commission banned the crypto exchange from operating in provincial capital markets and fined it $2 million, along with $96,550 in costs for operating an unregistered crypto asset-trading platform within the specified geographical area.
BC Wong, the CEO of KuCoin, said that KuCoin had always strived to work constructively with regulators worldwide. He stated that they disagreed with that decision on both substantive and procedural grounds and that they had pursued all available legal avenues to ensure a fair outcome for KuCoin. He also affirmed that they remained fully committed to transparent operations and compliance with all applicable laws.
FINTRAC has already made its statement that the country is against all kinds of malicious activities, including money laundering and terrorist financing. Sarah Paquet, the Director and Chief Executive Officer of the Financial Transactions and Reports Analysis Centre of Canada, stated that 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. She mentioned that FINTRAC works with businesses to help them understand and comply with their obligations under the Act. She added that they are also firm in ensuring that businesses continue to do their part and that they will take appropriate actions when needed.