Canada’s financial intelligence agency FINTRAC has fined KuCoin’s operating arm, Peken Global Ltd. C$19.5 million ($14.1 million) on July 28, 2025, after finding the firm did not follow the country’s anti-money laundering and terrorist financing laws.
FINTRAC said Peken failed to register in Canada as a foreign money services business, failed to report cryptocurrency transactions over C$10,000, (USD 7,200) and did not file suspicious transaction reports.
KuCoin says it has filed an appeal with the Federal Court of Canada and disputes FINTRAC’s view that it should be treated as a foreign money services business.
The regulator’s findings and the penalty
FINTRAC set the penalty at C$19.5 million, which is about $14.1 million. The regulator said the firm missed three main legal duties. First, the company did not register as required.
Second, it failed to report large transactions that exceeded C$10,000 (USD 7,200). Third, it did not submit reports on activity that should have raised suspicions. FINTRAC published the decision on Thursday and noted the date the penalty was imposed as July 28, 2025.
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KuCoin’s response and legal move
KuCoin hit back quickly, as the exchange said it respects the process but that it disagrees with the ruling. KuCoin called the penalty excessive and punitive in a statement.
The company also said the regulator’s classification of KuCoin as a foreign money services business is wrong.
KuCoin said it has filed an appeal in the Federal Court of Canada to seek a fair outcome. CEO BC Wong wrote on X(Twitter) that the company will pursue legal avenues and aims to resolve the dispute through the courts.
Registration and reporting issues
FINTRAC’s rules require firms that handle money or crypto in Canada to register and report certain transactions. The regulator looked at whether Peken met those duties and concluded it did not.
The reporting duty applies to large transfers and to activity that looks out of the ordinary. The rules aim to spot and stop money laundering and the funding of violent groups. FINTRAC said the failures were serious enough to merit an administrative monetary penalty.
Company moves and public statements
Earlier, UnoCrypto reported that the exchange named Adam Scott as its first Global Brand Ambassador, a move it said would help it reach a wider audience.
The company also pushed back on claims about its Bitcoin reserves, saying those reports were wrong and that its holdings had not fallen to 4,100 BTC. KuCoin combined these updates with its public response to FINTRAC in a bid to clarify its position.
Industry context and watchdog role
The penalty highlights the growing focus by regulators on crypto platforms. As countries tighten rules, exchanges must show they can meet registration and reporting duties.
Regulators say these controls help protect the financial system and ordinary users. For firms, the cost of failing to comply can be high. The case will likely draw attention from other national regulators that are watching how Canada enforces its rules.
Observers will watch the court timetable and any further public statements from FINTRAC or KuCoin. The outcome could affect other crypto firms that operate across borders.
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