KuCoin Faces Canada’s Largest Ever Anti-Money Laundering Fine

KuCoin appeals record $19.5 Million AML fine from Canada

Canada’s financial regulator has fined crypto exchange KuCoin C$19.5 million ($14.1 million) for breaking anti-money laundering (AML) and counter-terrorism financing laws. 

FINTRAC has imposed an administrative monetary penalty of $19,552,000 on Peken Global Limited (also operating as KuCoin), a Seychelles-incorporated entity operating in Canada. For more information, consult: https://t.co/AXuZs1ktyK pic.twitter.com/0GeNEgc3BI

— FINTRAC_Canada (@FINTRAC_Canada) September 25, 2025

The exchange swiftly responded by filing an appeal with the Federal Court of Canada to challenge the penalty.

What FINTRAC cited

On September 25, the Financial Transactions and Reporting Analysis Centre of Canada (FINTRAC) announced sanctions on Peken Global Ltd., the legal entity behind KuCoin, finalizing a decision made on July 28, 2025. 

Violations KuCoin is accused of committing. Source: FINTRAC

The regulator’s allegations include failing to register as a foreign money services business in Canada, missing reports on transactions exceeding C$10,000, and neglecting suspicious transaction filings.

KuCoin pushes back and appeals

KuCoin released a statement the same day affirming its commitment to transparency and regulatory compliance. However, the exchange firmly disputes FINTRAC’s classification of it as a foreign money services business and calls the fine “excessive and punitive.”

KuCoin has always strived to work constructively with regulators worldwide. We disagree with this decision on both substantive and procedural grounds, and we have pursued legal avenues by submitting an appeal before the Federal Court of Canada to ensure a fair outcome for KuCoin.…

— BC Wong (@BC_KuCoin) September 25, 2025

“We disagree with this decision on both substantive and procedural grounds, and we have pursued legal avenues by submitting an appeal before the Federal Court of Canada to ensure a fair outcome for KuCoin,” wrote CEO BC Wong on social media platform X. (as a separate footnote with a quote)

In August, KuCoin reported $53.6 billion in trading volume — significantly smaller than Binance’s $737.1 billion and Bybit’s $126.5 billion. 

The outcome of KuCoin’s legal challenge could set an important precedent for regulatory enforcement and compliance requirements across the Canadian crypto market.