Kucoin calls on an action in application of Canada in which the scholarship has been accused of not registering as a money service company and not maintaining the appropriate defenses against money laundering, a case that led to a penalty of more than $ 19 million ($ 14 million).
This unusual penalty of financial transactions and reports analysis Center of Canada (FINTRAC) was imposed after having noticed that Peken Global Limited, based in Seychelles, operating as Kucoin, has not reported large cryptographic transactions and has not reported suspicious transactions which may have involved money laundering or terrorist funding, the agency announced Thursday.
The regulator declared that Kucoin had not reported significant transactions nearly 3,000 times from 2021 to 2024 and in 33 cases “did not report financial transactions where there were reasonable reasons to suspect that transactions were linked to the committee or to the attempted money laundering or financing of terrorist activities.”
Kucoin said that he had appealed to the Canada Federal Court “for substantial and procedural reasons”.
“While Kucoin respects the decision -making process and remains attached to regulatory compliance and transparency, it does not agree with the conclusion that Kucoin is a foreign fund services and the imposed penalty, which maintains Kucoin is of an excessive and punitive nature,” the company said in a statement on Thursday.
This fine penalty represents most of the agency’s fines in the past year, she noted, after having imposed fines 23 times for a total of $ 25 million during this period. The alleged violations of Kucoin would have been serious and, in the case of the non-report of suspicious transactions, “severe”.
Kucoin was penalized in various jurisdictions in similar cases, including one of the Ontario securities committee in 2023. In the United States, the company has settled with the Ministry of Justice earlier this year, paying nearly $ 300 million, pleading guilty to an accusation of operations without license and agreeing to stay out of the country.
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