Cryptocurrency exchange Binance has appealed the $4.4 million penalty imposed on it by Canada's Financial Transactions and Reports Analysis Center (FINTRAC) in May.

On June 5, Binance filed a legal challenge in the Federal Court of Canada against the director of FINTRAC over allegations that it failed to comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The regulator announced on May 9 that it had fined Binance CAD6 million – approximately $4.4 million – for violations that included failing to register as a foreign exchange services business and failing to report digital currency transactions exceeding $10,000.

In its objection, Binance stated that it does not direct its services to Canadian residents. The exchange announced plans to exit the Canadian market in May 2023, blaming the regulatory environment. Cointelegraph reached out to Binance for comment but did not receive a response at the time of publication.

The FINTRAC decision was separate from Binance's legal predicaments in other countries. The company reached a $4.3 billion settlement with US authorities in November 2023, which required then-CEO Changpeng Zhao to resign. Zhao pleaded guilty to one charge and is serving a four-month sentence in federal prison.

In February, Nigerian authorities detained two Binance executives following allegations of tax evasion and money laundering at the company. British and Kenyan citizen Nadeem Anjarwalla escaped from Nigerian custody and was in Kenya at the time of publication. Tigran Gambaryan, a former special agent with the US Internal Revenue Service, reportedly contracted malaria during his detention in Nigeria.

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