KuCoin Appeals $19M FINTRAC Penalty Over Compliance Violations in Canada

KuCoin, one of the world’s largest cryptocurrency exchanges, is challenging a significant enforcement action brought by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The regulator imposed a record penalty of more than $19 million CAD ($14 million USD) against Seychelles-based Peken Global Limited, which operates as KuCoin, for allegedly failing to comply with Canadian financial regulations.

According to FINTRAC, KuCoin neglected to register as a money services business and failed to establish proper anti-money laundering (AML) and anti-terrorist financing controls. The regulator reported that between 2021 and 2024, KuCoin did not submit required reports for nearly 3,000 large crypto transactions. Additionally, in 33 instances, the exchange allegedly failed to report transactions where there were reasonable grounds to suspect links to money laundering or terrorist activity.

KuCoin has appealed the decision to the Federal Court of Canada, disputing both the findings and the severity of the penalty. The company maintains that it is not a Foreign Money Services Business as classified by FINTRAC and argues that the fine is “excessive and punitive.” In a statement, KuCoin emphasized its respect for the regulatory process and reaffirmed its commitment to compliance and transparency while challenging the regulator’s conclusions.

The fine accounts for the majority of FINTRAC’s enforcement actions over the past year, during which it issued 23 penalties totaling $25 million. The agency described KuCoin’s violations as serious, highlighting the failure to report suspicious transactions as particularly severe.

This is not KuCoin’s first clash with regulators. In 2023, the Ontario Securities Commission sanctioned the exchange for similar compliance breaches. Earlier in 2025, KuCoin also reached a $300 million settlement with the U.S. Department of Justice, pleading guilty to operating without a license and agreeing to exit the U.S. market.

With global regulators tightening oversight of crypto exchanges, KuCoin’s Canadian appeal will be closely watched as a test of how far enforcement actions can reach across jurisdictions.