Canada’s financial watchdog just hit crypto exchange KuCoin with a hefty fine, totaling USD $14 million. The money laundering and terror financing watchdog, known as FINTRAC, says KuCoin didn’t follow the rules. This marks a significant move against one of the industry’s big players.
KuCoin, however, isn’t taking this punishment quietly. The company quickly filed an appeal with a Canadian court. They stated their strong disagreement with FINTRAC’s decision, calling the penalty “excessive and punitive.” This sets the stage for a legal battle.
FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, applied this record penalty of CAD $19.5 million, which is about USD $14.1 million. The fine was issued on July 28, 2025, but publicly announced this past Thursday. The target was Peken Global Limited, the company behind KuCoin’s operations. FINTRAC accused them of serious breaches of rules meant to stop money laundering and terror financing.
Why FINTRAC Stepped In
According to FINTRAC’s official statement, Peken Global Limited broke the law. The company, based in Seychelles but operating in Canada, violated Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. It also ignored related rules.
The financial regulator pointed out several major errors. First, KuCoin failed to register as a foreign money services business. Second, it didn’t report almost 3,000 large crypto transactions over USD $10,000 between 2021 and 2024. Third, it missed reporting 33 specific suspicious transactions. These were deals where there was good reason to think they were linked to money laundering or terror financing. FINTRAC labeled these failures as “severe.”
Sarah Paquet, FINTRAC’s Director and CEO, underlined the importance of these rules. She said Canada’s anti-money laundering and terror financing system protects Canadians and the nation’s economy. FINTRAC tries to help businesses understand their duties. However, she warned they will act firmly when companies don’t do their part.
Read FINTRAC’s official statement here.
KuCoin Fights Back in Court
KuCoin, a major cryptocurrency exchange, processes huge volumes of transactions. In August, it handled USD $53.6 billion. The platform strongly rejected FINTRAC’s ruling. In a statement issued on the same Thursday, KuCoin argued against the decision on “both substantive and procedural” grounds. It also questioned its classification as a foreign money services business.
The company’s statement explained its stance: “KuCoin respects the decision-making process. We are committed to regulatory compliance and transparency. However, we disagree with FINTRAC calling KuCoin a Foreign Money Services Business. We also find the imposed penalty excessive and punitive.”
BC Wong, KuCoin’s CEO, also shared his thoughts on X (formerly Twitter). He stated, “We disagree with this decision both substantively and procedurally. We have filed an appeal with the Federal Court of Canada. This is to ensure a fair outcome for KuCoin.”
A Familiar Tune for KuCoin
This fine represents the largest single penalty FINTRAC has issued in the 2024-25 fiscal year. During this period, the regulator sent out 23 violation notices. These totaled over $25 million, which is the highest amount in its history. Since 2008, FINTRAC has handed out more than 150 penalties across different industries.
This isn’t KuCoin’s first time under the regulatory spotlight. In 2023, the Ontario Securities Commission (OSC) took enforcement action. It cited KuCoin for operating without proper registration. Earlier in 2025, KuCoin reached an agreement with the U.S. Department of Justice (DOJ). They paid almost USD $300 million and pleaded guilty to operating without a license. The exchange also promised to exit the U.S. market. More recently, South Korea announced plans to sanction KuCoin and other crypto exchanges.
The appeal process could stretch on for months as KuCoin tries to overturn the decision. For now, the regulator emphasizes that these fines aim to change non-compliant behavior. They also seek to strengthen the integrity of the Canadian financial system.
Interestingly, KuCoin’s own token, KCS, didn’t seem particularly affected by the news. It experienced a small dip on Thursday. However, it has since risen 1.1% in 24 hours. Its price sits at USD $0.07697, according to CoinGecko data at press time.