TLDR:
- KuCoin is appealing FINTRAC’s $19.5M penalty, calling it excessive and challenging its classification as a foreign MSB.
- FINTRAC found KuCoin failed to register, report large crypto transactions, and submit suspicious activity reports.
- The appeal was filed before Canada’s Federal Court, with KuCoin seeking a fair hearing on both procedural and legal grounds.
- FINTRAC reported a record 23 violation notices in 2024–25, totaling over $25M across multiple sectors.
KuCoin is pushing back hard against Canada’s financial watchdog. The crypto exchange has filed a legal appeal challenging a $19.5 million penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).Â
The dispute centers on whether KuCoin should be classified as a foreign money services business and whether the fine was justified. The move comes as regulators worldwide tighten their oversight of crypto platforms.
KuCoin Disputes Compliance Findings
In a statement shared on X, KuCoin’s representative BC Wong confirmed the exchange has submitted an appeal to Canada’s Federal Court.Â
The company disputes FINTRAC’s March 2025 Notice of Violation, which classified KuCoin as a foreign money services business. KuCoin maintains that the decision was both procedurally and substantively flawed.
KuCoin has always strived to work constructively with regulators worldwide. We disagree with this decision on both substantive and procedural grounds, and we have pursued legal avenues by submitting an appeal before the Federal Court of Canada to ensure a fair outcome for KuCoin.…
— BC Wong (@BC_KuCoin) September 25, 2025
The exchange argued that the $19.5 million penalty is excessive and does not reflect its efforts to remain compliant. Wong added that KuCoin continues to work with regulators globally and remains committed to transparent operations. The firm said the appeal seeks to ensure due process and a fair outcome.
According to the official FINTRAC release, KuCoin’s parent company Peken Global Limited failed to register as required under Canada’s anti-money laundering law.Â
The Centre also cited unreported large virtual currency transactions and missing suspicious transaction reports. FINTRAC stated these reports are crucial for providing actionable intelligence to law enforcement.
Sarah Paquet, FINTRAC’s Director and CEO, reiterated that the penalty was intended to drive compliance. She stressed that businesses must do their part to protect Canada’s financial system.
Regulatory Crackdown Intensifies
This case arrives during a period of heightened enforcement by FINTRAC. The agency said it issued 23 Notices of Violation in 2024–25, its highest count on record. Combined, these penalties exceeded $25 million across several industries, including financial entities and casinos.
The watchdog emphasized that reporting requirements help detect money laundering and terrorist financing risks. It also reminded businesses that penalties are designed to correct non-compliant behavior, not punish.
KuCoin’s challenge could take months to resolve as the case proceeds through Canada’s legal system. Market participants are closely watching the outcome, which could influence how other crypto exchanges approach compliance in Canada. For now, KuCoin continues operating while the appeal process moves forward.
The post KuCoin Fights $19.5M FINTRAC Penalty in Federal Court appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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