KuCoin challenges Canada’s $14 million fine for AML violations

Key points:

• FINTRAC accused KuCoin of failing to report nearly 3000 large transactions and 33 suspicious transactions between 2021 and 2024.
• The fine exceeded $14 million and was the largest in FINTRAC’s history: last year, the agency imposed 23 fines totaling $25 million.
• KuCoin has appealed to the Federal Court of Canada, saying the fine is excessive and punitive.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Peken Global Limited, operating under the KuCoin brand, $19,5 million. The regulator said the exchange violated AML rules.

According to FINTRAC, KuCoin did not register as a money services business and systematically failed to report transactions. In particular, from 2021 to 2024, the exchange did not report nearly 3000 virtual currency transfers worth $10 000 or more, and in 33 cases did not record suspicious transactions.

The regulator’s arguments

The regulator emphasized that failure to report suspicious transactions is one of the most serious violations.

“We are also firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed,” said Sarah Paquet, Director and Chief Executive Officer at FINTRAC.

FINTRAC noted that the KuCoin fine was the largest in 2024-2025. During this period, the Center issued 23 fines totaling more than $25 million, which was a record high.

KuCoin’s position and appeal

KuCoin stated that it respects the work of regulators and intends to comply with the rules, but disagrees with FINTRAC’s conclusions. According to the company, the exchange was mistakenly equated with foreign money transfer service providers, and the fine imposed is excessive and punitive in nature.

The company emphasized that it has filed an appeal with the Federal Court of Canada, citing “substantive and procedural grounds” for challenging the decision.

The company has already faced claims from regulators in other jurisdictions. In 2023, the New York Attorney General’s Office sued KuCoin, claiming that the platform was illegally conducting business in the state without registration. Attorney General Letitia James accused the exchange of violating the so-called Martin Act, which is used to combat financial fraud.

In early 2025, KuCoin also settled a dispute with the US Department of Justice. The company agreed to pay nearly $300 million and cease operations in the US market, acknowledging that it had been operating without a license.