article Canada Slaps KuCoin with Record $14M Fine Over Major AML Violations

Canada’s financial watchdog has imposed a historic penalty on KuCoin, marking the nation’s largest-ever fine for anti–money laundering (AML) breaches.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced a C$19.6 million (US$14.09 million) fine against Seychelles-based Peken Global Limited, the company operating KuCoin. According to FINTRAC, the exchange failed to register as a foreign money services business and neglected to report nearly 3,000 large cryptocurrency transactions between 2021 and 2024.

Additionally, the agency cited 33 incidents where KuCoin did not report transactions that raised red flags for potential money laundering or terrorist financing.

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FINTRAC Acts Before Global Audit

The enforcement comes just ahead of a critical Financial Action Task Force (FATF) audit scheduled for November, during which Canada’s safeguards against financial crimes will be closely examined.

KuCoin has denied all allegations, describing the fine as “excessive and punitive.” The company stated that it has appealed to the Federal Court of Canada, arguing that FINTRAC wrongly classified it as a foreign money services business under Canadian regulations.

FINTRAC revealed that the KuCoin case alone represents the bulk of its total enforcement actions over the past year. Out of 23 total penalties worth $25 million, KuCoin’s violations were described as “particularly serious” and, in some cases, “severe.”

This isn’t KuCoin’s first regulatory issue in Canada — in 2023, the Ontario Securities Commission also sanctioned the exchange for operating without proper registration.

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Previous U.S. Settlement

Earlier this year, KuCoin reached a $300 million settlement with the U.S. Department of Justice after pleading guilty to running an unlicensed money services business. As part of that agreement, the company committed to cease all operations in the United States.

The timing of FINTRAC’s fine coincides with Canada’s largest cryptocurrency seizure ever. Authorities confiscated over C$56 million (about US$40 million) in assets from the lesser-known exchange TradeOgre. The Royal Canadian Mounted Police (RCMP) executed the operation, completely dismantling the platform — marking the first time Canadian law enforcement has fully shut down a crypto exchange.

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Thailand’s Surprising Partnership with KuCoin

Despite ongoing legal challenges, KuCoin continues to expand globally. In a recent move, Thailand’s Ministry of Finance selected KuCoin as its first official crypto partner for the G-Token initiative — a government-backed, blockchain-based digital bond program valued at 5 billion baht (approx. $153 million).

Under this program, KuCoin Thailand will collaborate with XSpring Digital, SIX Network, and Krungthai XSpring to manage token subscriptions, redemptions, and listings. The G-Tokens, fully backed by the Thai baht, offer yields higher than traditional savings accounts and allow investments starting at just $3, making government bonds accessible to ordinary citizens.

The initiative, authorized under Thailand’s Public Debt Management Act, reflects the country’s push to modernize public finance and democratize access to investments through blockchain technology. KuCoin is also expected to advise on expanding G-Token offerings internationally, pending regulatory approval.

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Summary

• FINTRAC fined KuCoin a record C$19.6 million for AML noncompliance.

• The exchange allegedly failed to report 3,000 large crypto transactions and 33 suspicious cases.

• KuCoin has appealed the decision, calling the penalty excessive.

• Canada’s AML enforcement is under scrutiny ahead of an upcoming FATF audit.

• Despite regulatory pressure, KuCoin continues global expansion, including a major government partnership in Thailand.