Crypto exchange KuCoin is pushing back against Canada‘s FINTRAC penalty of C$19.5 million ($14 million) due to AML compliance. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a massive penalty against Kucoin back in July. The regulator, however, shared the details of the penalty in an official release yesterday, September 25th. FINTRAC accuses KuCoin of non-compliance In the release , FINTRAC stated that KuCoin failed to register as a foreign money services business in Canada. The regulator said this was a basic legal requirement for any foreign exchange offering services in the country. It explained that KuCoin continued operating without this registration, which put it in violation of Canadian anti-money laundering (AML) rules. FINTRAC also added that KuCoin did not report large cryptocurrency transactions worth $10,000 or more. The agency said that the exchange failed to submit suspicious transaction reports when there were clear grounds to suspect links to money laundering or terrorist financing. KuCoin, led by CEO BC Wong, pushed back against the Canadian regulator’s decision. The exchange said the C$19.5 million ($14 million) penalty was excessive and the findings misrepresented the company’s compliance record. The crypto exchange confirmed it filed an appeal with the Federal Court of Canada. KuCoin said it respects Canada’s regulatory process but disagrees on both substantive and procedural grounds. In a statement on X, CEO Wong said KuCoin would pursue all legal avenues to secure a fair outcome. He said KuCoin rejects FINTRAC’s classification of the exchange as a foreign money services business. The cryptocurrency exchange said the penalty threatens to unfairly harm its reputation and operations. 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 KuCoin’s native token drops by 0.9% KuCoin’s native token, KCS, dropped after the penalty was disclosed. The token fell 0.9% in the past 24 hours to trade at $15.19 during press time. KCS’s market capitalization stands at $1.9 billion, according to CoinGecko data. FINTRAC’s penalty came during a period of rising activity and trading volumes in crypto exchanges. KuCoin’s trading volume in August reached $53.6 billion, up from $49.9 billion in July. The continuous growth shows steady demand for trading crypto on KuCoin. However, KuCoin’s share of the market remained far smaller than its biggest rivals. Binance recorded $737.1 billion in volume during August, while Bybit handled $126.5 billion. The comparison shows KuCoin’s difficulty in scaling against dominant crypto exchanges while facing new legal difficulties in Canada. Get up to $30,050 in trading rewards when you join Bybit today
