Canada's Record $14M Crypto Fine Signals Stricter Regulatory Era

Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has imposed its largest-ever administrative monetary penalty of C$19.55 million (approximately $14.09 million) on Peken Global Limited, the operator of cryptocurrency exchange KuCoin, for violating anti-money laundering (AML) and anti-terrorist financing (ATF) regulationsFINTRAC imposes an administrative monetary penalty on Peken Global Limited^[1]. The Seychelles-incorporated firm, which operates in Canada as a foreign money services business, failed to register with FINTRAC, did not report large virtual currency transactions exceeding C$10,000, and submitted insufficient suspicious transaction reports (STRs) in 33 instancesCanada's anti-money laundering agency fines crypto exchange KuCoin parent^[2]. These violations, which occurred between 2021 and 2024, undermined Canada’s financial intelligence framework, as STRs are critical for identifying illicit activitiesFintrac imposes largest ever penalty on KuCoin operator^[3].

The penalty, announced on July 28, 2025, follows a record number of enforcement actions by FINTRAC in fiscal year 2024–25, during which 23 businesses were cited for non-compliance, totaling over C$25 million in penaltiesFINTRAC imposes an administrative monetary penalty on Peken Global Limited^[1]. Sarah Paquet, FINTRAC’s Director and CEO, emphasized that the agency’s mandate is to safeguard Canada’s financial system and ensure businesses meet their AML/ATF obligations. “We are firm in ensuring that businesses continue to do their part and will take appropriate actions when needed,” she statedFINTRAC imposes an administrative monetary penalty on Peken Global Limited^[1]. The fine reflects FINTRAC’s authority under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which allows for administrative penalties to deter non-complianceFintrac imposes largest ever penalty on KuCoin operator^[3].

Peken Global’s violations highlight systemic challenges in the crypto sector, where rapid innovation often outpaces regulatory compliance. The firm’s failure to report large virtual currency transactions and submit STRs created gaps in FINTRAC’s ability to detect money laundering or terrorist financing activities. The agency noted that the lack of STRs in 33 instances represented “severe non-compliance and a loss of critical information”Canada's anti-money laundering agency fines crypto exchange KuCoin parent^[2]. This case underscores the growing scrutiny of crypto platforms, particularly those operating across jurisdictions, as regulators worldwide intensify efforts to combat financial crimeFintrac imposes largest ever penalty on KuCoin operator^[3].

The penalty also occurs amid Canada’s preparations for an audit by the Financial Action Task Force (FATF), a global watchdog scheduled to assess the country’s AML/ATF systems in November 2025FINTRAC imposes an administrative monetary penalty on Peken Global Limited^[1]. The audit will evaluate Canada’s compliance with international standards, including its ability to address risks posed by virtual assets. FINTRAC’s enforcement actions, including this landmark penalty, demonstrate the agency’s commitment to aligning with FATF guidelines and reinforcing Canada’s regulatory credibility.

Peken Global has appealed the fine to the Federal CourtCanada's anti-money laundering agency fines crypto exchange KuCoin parent^[2], a move that could set precedents for future crypto-related enforcement. The case is part of a broader trend of regulatory tightening in the crypto space, with Canada having pioneered AML rules for virtual assets since 2014. Meanwhile, the U.S. has recently advanced its own crypto framework, including the GENIUS Act, which seeks to standardize stablecoin regulations. Analysts suggest that such global regulatory convergence may influence future enforcement strategies in Canada.

The fine signals a pivotal moment for crypto firms operating in Canada. As the country’s regulatory environment matures, businesses must prioritize compliance with AML/ATF obligations, particularly in cross-border transactions. FINTRAC’s record penalty sends a clear message: non-compliance will face escalating consequences. With the crypto sector projected to grow significantly in 2025, regulatory clarity and adherence to reporting requirements will remain central to maintaining financial integrity.