KuCoin Appeals FINTRAC’s Punitive Decision

• While respecting regulatory compliance, KuCoin firmly rejects FINTRAC’s decision. 
• Cites misclassification under Canadian AML rules and considering the penalty excessive. 
• The company has formally filed an appeal before the Federal Court of Canada.

KuCoin has formally appealed a penalty imposed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which accused the exchange of three compliance violations. 

KuCoin’s Defense Before Canada’s Federal Court

In its defense, KuCoin filed an appeal with the Federal Court of Canada arguing that it should not be classified under the law on Foreign Money Services Business. The cryptocurrency exchange noted that it has both substantive and procedural grounds to file the appeal against the punitive ruling by FINTRAC.

KuCoin claims that this position was derived from professional analysis and is strictly based on applicable local laws and regulations, as well as the specific facts. KuCoin have thoroughly articulated the basis for the position in the appeal document submitted

 “We disagree with this decision on both substantive and procedural grounds, and we have pursued all available legal avenues to ensure a fair outcome for KuCoin. As always, we remain fully committed to transparent operations and compliance with all applicable laws,” BC Wong, CEO of KuCoin, noted.

What KuCoin Assures Its 40 Million Customers

KuCoin has reassured its more than 40 million customers across over 200 countries and regions that their funds are safe. 

The exchange stressed that operations will continue as usual during the legal process. Meanwhile, KuCoin positions this appeal as an endeavor to achieve both regulatory clarity and fair treatment for global digital asset platforms.

How This Case Could Shape Crypto Rules in Canada

The appeal could set a precedent for how Canada treats international crypto exchanges. Similar battles, such as Binance’s clash with the FINTRAC, show that global platforms are willing to fight local rulings they see as unfair.

For instance, KuCoin may argue the penalty of C$19.6 million, approximately $14.09 million, is largely overstated in regards to the charges. Moreover, KuCoin has actively implemented several key features – such as being the first exchange to mandate Know-Your-Customer (KYC) procedures, anti-money laundering (AML), and global licensing efforts in the past years – to help counter FINTRAC’s claims of non-compliance.