Canada's financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada, has imposed an administrative monetary penalty of C$19,552,000 on Peken Global Limited, the Seychelles-incorporated entity that operates the KuCoin cryptocurrency exchange. The penalty was levied on 28 July 2025 and published by the regulator on 25 September 2025. It relates to three violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act — the principal statute governing anti-money laundering and counter-terrorist financing obligations across all reporting entities in Canada — and was the largest administrative monetary penalty FINTRAC had ever imposed at the time.
FINTRAC classifies KuCoin as a foreign money services business, a classification KuCoin disputes, meaning it serves Canadian clients from outside the country's borders but is nonetheless subject to full registration and compliance obligations under the Act. FINTRAC's notice of violation sets out that the exchange failed to meet those statutory obligations in three distinct respects. The regulator publishes the details of each violation in its official penalty registry.
THE LARGEST PENALTY IN FINTRAC'S HISTORY AT THE TIME
The C$19.55 million figure was the largest administrative monetary penalty FINTRAC had ever imposed.
KuCoin has contested the decision and filed an appeal with the Federal Court of Canada. The Federal Court appeal will determine whether the penalty stands as issued or is modified. KuCoin said it is appealing on substantive and procedural grounds, disputing that it should be classified as a foreign money services business and calling the penalty excessive and punitive. While the case proceeds through the courts, the C$19.55 million figure remains the published penalty of record on FINTRAC's enforcement register.
FINTRAC ENFORCEMENT STANCE
FINTRAC has stated publicly that it will deploy its full range of enforcement tools — including administrative monetary penalties, notices of violation, and referrals to law enforcement authorities — when reporting entities, whether domestic institutions or foreign operators, fall short of their statutory duties.