Crypto exchange KuCoin is challenging a major enforcement action from Canada’s financial watchdog. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a $14.1 million (C$19.5 million) fine to KuCoin for alleged breaches of Canadian anti-money laundering (AML) and counter-terrorism financing legislation. KuCoin has responded by filing a grievance where it was written that the verdict was both unjust and excessive.
Source: The Block
On 28th July 2025, FINTRAC served the notice of the penalty on Peken Global Ltd., KuCoin’s operating entity. The regulator found a number of failures in compliance with regulations which included:
FINTRAC stated that these mistakes were at the root of Canada’s reduced ability to track illegal money flows in the crypto sector.
KuCoin was quick to react and denied the decision on Thursday by announcing that they had taken the matter to the Federal Court of Canada. In a statement to the public, KuCoin said that it “respects the decision process and is still committed to regulatory compliance and transparency,” but disagreed with FINTRAC’s interpretation.’
CEO BC Wong wrote on X (formerly Twitter):
Source: X
The exchange further characterized the fine as “excessive and punitive.”
Since the announcement, the price of KuCoin (KCS) has decreased by 0.7%, showing a value of $15.12 at 2:00 a.m. ET Friday. Its market capitalization is estimated at $1.9 billion.
KuCoin’s trading volume is still strong despite the regulatory pressure. In August, the exchange volume rose to $53.6 billion, compared to $49.9 billion in July. Nonetheless, KuCoin is still very far from other exchanges, such as Binance and Bybit, where the volumes are $737.1B and $126.5B, respectively.
The case underscores growing regulatory scrutiny on global crypto exchanges operating in Canada. While KuCoin continues to expand trading volumes, its appeal outcome could set an important precedent for how regulators classify and oversee offshore exchanges in the Canadian market.
