Canada Imposes Unprecedented $14M Crypto Penalty, Indicating Tougher Regulatory Climate

Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has issued its highest-ever administrative fine of C$19.55 million (about $14.09 million) to Peken Global Limited, the company behind the KuCoin cryptocurrency exchange, for breaching anti-money laundering (AML) and anti-terrorist financing (ATF) laws FINTRAC imposes an administrative monetary penalty on Peken Global Limited [ 1 ]. The Seychelles-based entity, which operates in Canada as a foreign money services provider, did not register with FINTRAC, did

report significant currency transactions over C$10,000, and failed to file adequate suspicious transaction reports (STRs) on 33 occasions Canada's anti-money laundering agency fines crypto exchange KuCoin parent [ 2 ]. These breaches, which took place from 2021 to 2024, weakened Canada’s financial intelligence system, as STRs are essential for uncovering illegal activity Fintrac imposes largest ever penalty on KuCoin operator [ 3 ].

The penalty, revealed on July 28, 2025, comes after a record year of enforcement by FINTRAC in 2024–25, during which 23 companies were penalized for non-compliance, with total fines exceeding C$25 million FINTRAC imposes an administrative monetary penalty on Peken Global Limited [ 1 ]. Sarah Paquet, FINTRAC’s Director and CEO, stressed that the agency’s role is to protect Canada’s financial system and ensure businesses fulfill their AML/ATF responsibilities. “We are committed to making sure businesses uphold their obligations and will act decisively when necessary,” she said FINTRAC imposes an administrative monetary penalty on Peken Global Limited [ 1 ]. The sanction demonstrates FINTRAC’s power under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to impose penalties that discourage non-compliance Fintrac imposes largest ever penalty on KuCoin operator [ 3 ].

Peken Global’s infractions shed light on persistent issues within the crypto industry, where rapid technological change often surpasses regulatory oversight. The company’s neglect in reporting large virtual currency transactions and submitting STRs hindered FINTRAC’s efforts to detect money laundering and terrorist financing. The agency pointed out that missing STRs in 33 cases amounted to “serious non-compliance and the loss of vital intelligence” Canada's anti-money laundering agency fines crypto exchange KuCoin parent [ 2 ]. This situation highlights the increasing regulatory attention on crypto exchanges, especially those with cross-border operations, as authorities globally ramp up measures to fight financial crime Fintrac imposes largest ever penalty on KuCoin operator [ 3 ].

This fine also comes as Canada readies itself for a review by the Financial Action Task Force (FATF), the international body set to examine the nation’s AML/ATF framework in November 2025 FINTRAC imposes an administrative monetary penalty on Peken Global Limited [ 1 ]. The assessment will measure Canada’s adherence to global standards, including its management of risks related to digital assets. FINTRAC’s enforcement actions, including this significant penalty, underscore the agency’s dedication to meeting FATF requirements and strengthening Canada’s regulatory reputation.

Peken Global has challenged the fine in Federal Court Canada's anti-money laundering agency fines crypto exchange KuCoin parent [ 2 ], a step that could influence future enforcement in the crypto industry. This case is part of a wider movement toward stricter regulation in the digital asset space, with Canada having introduced AML rules for virtual currencies as early as 2014. Meanwhile, the United States has recently progressed its own crypto regulations, such as the GENIUS Act, which aims to create uniform standards for stablecoins. Experts believe that this trend toward international regulatory alignment could shape how Canada enforces its own rules going forward.

This record fine marks a turning point for cryptocurrency businesses in Canada. As the regulatory landscape evolves, companies must focus on meeting AML/ATF requirements, especially for cross-border operations. FINTRAC’s unprecedented penalty makes it clear: failure to comply will bring increasingly severe repercussions. With the crypto market expected to expand further in 2025, strict adherence to reporting and compliance will be crucial for upholding the integrity of the financial system.