KuCoin, a Seychelles-based cryptocurrency exchange ranked among the world's top five by trading volume, has appealed a C$19.4 million (approximately $14 million USD) penalty imposed by Canada's Financial Transactions and Reports Analysis Centre (FINTRAC). The penalty, announced on September 25, 2025, stems from allegations that KuCoin failed to register as a money-services business and neglected anti-money laundering (AML) reporting obligations between 2021 and 2024.
FINTRAC stated that KuCoin, operated by Peken Global Limited, did not report nearly 3,000 large-value cryptocurrency transactions (each exceeding C$10,000) and failed 33 times to flag transactions suspected of involving money laundering or terrorist financing. The regulator described the violations as "serious" and, for the suspicious activity reports, "severe." Under Canadian law, crypto platforms must register with FINTRAC if they facilitate virtual currency transactions, with penalties up to C$500,000 per violation.
KuCoin filed an appeal with the Federal Court of Canada "on both substantive and procedural grounds," arguing the fine was "excessive and punitive" and disputing its classification as a foreign money-services business. This case marks FINTRAC's largest enforcement action in the past year, accounting for most of the C$25 million in total penalties across 23 cases. The previous record was a C$7.4 million fine against Binance Canada in 2023, which led to its exit from the Canadian market.
KuCoin has faced similar regulatory actions globally, including a 2023 fine by the Ontario Securities Commission and a near-$300 million settlement with the U.S. Department of Justice earlier this year, where it pleaded guilty to unlicensed operations and agreed to cease U.S. business. FINTRAC's increased scrutiny reflects broader concerns about offshore platforms enabling sanctions evasion or terrorist financing.