- KuCoin appeals $19.5M fine from FINTRAC over AML breaches and reporting failures.
- Regulatory pressure mounts on Canada prepares for the upcoming FATF compliance review
- Global scrutiny grows as KuCoin faces major penalties in both Canada and the U.S.
KuCoin has appealed a $19.5 million fine issued on July 28, 2025, by the Canadian government. The company is discussing the decision on both legal and procedural grounds. While the case is ongoing, KuCoin says it remains committed to regulatory compliance, transparency, and user safety. The appeal, according to the company, is meant to secure a fair and balanced outcome through proper legal channels for three anti-money laundering (AML) violations.
KuCoin’s Appeal Signals Rising Crypto Regulation
KuCoin claims that it is dedicated to adhering to regulations and maintaining transparency while pursuing an equitable resolution in the Federal Court of Canada. The case indicates increased examination by Canadian officials as the nation gears up for an imminent Financial Action Task Force (FATF) evaluation focused on reviewing Canada’s anti-money laundering and counter-terrorist financing system.
For users and stakeholders, this scenario underscores the rising regulatory dangers in the crypto sector and the necessity of participating with entirely compliant platforms. Regulatory measures seek to safeguard consumers and uphold the integrity of the financial system amid the changing digital asset environment.
The shortcomings of KuCoin involve nearly 3,000 transactions exceeding $10,000 that the company failed to report from June 1, 2021, to May 8, 2024, which FINTRAC considered a minor violation. Because, the regulator indicates that the company neglected to report transactions in 33 instances where there were valid reasons to suspect links to money laundering or terrorist financing, classifying this as serious non-compliance or a significant breach, which it claims results in a loss of essential information.
The doubtful cases involved dealings between Peken Global Ltd. and significant dark web or unlawful digital marketplaces believed to enable harmful cyber operations in Canada and the trade of illegal products and services.
Related: KuCoin Partners with VBA and 1Matrix to Advance National Blockchain Goals
KuCoin Faces Global Scrutiny for AML Violations
In late 2025, KuCoin was hit with a large penalty by Canada’s financial intelligence regulator, FINTRAC. This penalty is one of the biggest enforcement actions FINTRAC has taken this year. The main reason for the fine is that KuCoin failed to report suspicious transactions, which is considered a serious breach of Canadian law aimed at preventing money laundering and terrorist financing.
KuCoin’s troubles are not limited to Canada. In early 2025, the company agreed to pay $300 million to settle allegations with the US Department of Justice for operating without the proper licenses. Despite these challenges, KuCoin is officially contesting the Canadian penalty. The company argues that it should not be classified as a foreign money services business under Canadian law and believes the fine is excessive and unfair.
In Canada, businesses involved in financial transactions such as casinos, banks, real estate agents, and money services companies must follow the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This law requires them to keep proper records, identify their clients, establish strong compliance programs, and report certain transactions to FINTRAC.
KuCoin failed to meet these important legal obligations, particularly the duty to disclose suspicious financial transactions. This failure resulted in a significant penalty. The case underscores the strict regulations cryptocurrency companies face worldwide to prevent illegal activities. KuCoin continues to challenge the ruling both on the facts and the legal process.
