KuCoin Appeals Canadian Enforcement Action

KuCoin is appealing a Canadian enforcement action that accused the exchange of failing to register as a money-services business and for not maintaining adequate defenses against money laundering.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a penalty exceeding $19 million (or $14 million U.S.) after it was found that Peken Global Limited, trading as KuCoin, did not report large crypto transactions and failed to flag suspicious activity potentially linked to money laundering or terrorist financing.

FINTRAC reported that KuCoin failed to report significant transactions on nearly 3,000 occasions from 2021 to 2024 and did not report 33 transactions where there were reasonable grounds to suspect they were tied to money laundering or terrorist financing.

KuCoin stated that it has filed an appeal with the Federal Court of Canada on both substantive and procedural grounds. The company expressed its respect for the regulatory process but disagreed with the determination that it qualifies as a Foreign Money Services Business, arguing that the penalty is excessive and punitive.

This FINTRAC penalty constitutes a large portion of the agency’s total fines in the last year, which amounted to $25 million across 23 cases. KuCoin’s alleged infractions were considered serious, particularly the failure to report suspicious transactions.

Previously, KuCoin has faced penalties in various jurisdictions, including one from the Ontario Securities Commission in 2023. In the U.S., the company reached a settlement with the Department of Justice earlier this year, paying nearly $300 million and pleading guilty to operating without a license, agreeing to exit the U.S. market.

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