FINTRAC Fines KuCoin Operator C$19.6 Million for Compliance Failures

Highlights:

• FINTRAC has fined KuCoin for unreported crypto transactions and missed suspicious activity alerts.
• KuCoin has appealed the record penalty in Canada as authorities increase enforcement before a global watchdog review.
• The agency cited 33 missed suspicious reports and has called KuCoin’s compliance breaches serious and, in several cases, severe.

Canada’s financial intelligence agency has fined the operator of KuCoin C$19.6 million (US$14.09 million), the largest penalty of its kind in the country. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said Seychelles-based Peken Global Limited failed to register as a foreign money services business.

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🚨 KuCoin hit with $14M Canadian action over registration & AML controls dispute.

The exchange plans to appeal the enforcement move. 🇨🇦#KuCoin #CryptoNews #Regulation #Canada #AML #Exchange pic.twitter.com/QS4flHOE86

— @LanCentralCoin – Daily (@CentralNewsYT) September 26, 2025

The agency also said the operator neglected to report almost 3,000 large virtual currency transactions between 2021 and 2024. It further identified 33 cases where the exchange did not flag suspicious transactions that could relate to money laundering or terrorist financing.

FINTRAC announced the fine weeks before Canada faces a critical review by the Financial Action Task Force. The review will examine how Canada enforces safeguards against financial crimes. The agency described the violations as “serious” and, in several cases, “severe.” The fine represents the largest single action in FINTRAC’s history. It also accounts for most of the $25 million in penalties issued by the agency in the past year.

FINTRAC Fines KuCoin as Exchange Appeals Ruling

KuCoin strongly disputed FINTRAC’s findings and filed an appeal with the Federal Court of Canada. The company said the agency wrongly classified it as a foreign money services business under Canadian law. KuCoin also called the penalty “excessive and punitive.”

KuCoin has always strived to work constructively with regulators worldwide. We disagree with this decision on both substantive and procedural grounds, and we have pursued legal avenues by submitting an appeal before the Federal Court of Canada to ensure a fair outcome for KuCoin.…

— BC Wong (@BC_KuCoin) September 25, 2025

In a statement, the company said it respects the decision-making process but disagrees with both the fine and the classification. KuCoin said it remains committed to compliance and transparency despite the legal challenge.

The exchange has faced similar actions before. In 2023, the Ontario Securities Commission fined KuCoin for operating without registration. Earlier this year, the U.S. Department of Justice secured a nearly $300 million settlement with the company. KuCoin agreed to cease serving U.S. clients and pleaded guilty to operating an unlicensed money services business.

Canada’s recent actions extend beyond KuCoin. The Royal Canadian Mounted Police seized more than C$56 million in assets from the little-known exchange TradeOgre. Authorities shut down the platform entirely, marking Canada’s largest cryptocurrency seizure and the first closure of a crypto exchange by national law enforcement.

CANADIAN POLICE CONFIRM $40M CRYPTO SEIZURE

The Royal Canadian Mounted Police has confirmed the seizure of $56M CAD (~$40M USD) of assets from TradeOgre, a centralized exchange.

This is the largest crypto asset seizure in Canadian history. As per the RCMP’s website, Arkham was… pic.twitter.com/YvkVPh8N7e

— Arkham (@arkham) September 18, 2025

Thailand Selects KuCoin for $153M Digital Bond Program Despite Recent Regulatory Trouble

KuCoin has been growing in Asia despite its difficulties in Canada. In Thailand, the Ministry of Finance has recently designated KuCoin as its official partner in a new blockchain-based initiative. The project, called the G-Token program, will issue government-backed tokenized bonds.

The first release totals about 5 billion baht, or $153 million. Every token is completely supported by the Thai baht and comes with a higher yield than normal bank rates. Government securities are more affordable to retail purchasers since investors can invest with as little as $3. The bonds will be subscribed, redeemed, and listed by KuCoin Thailand. The exchange will also give guidance on the possible international expansion of the program, where it will be approved.

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