Binance Canada is obligated to report to FINTRAC as a Money Service Business (MSB).
One of the largest cryptocurrency exchanges in the world, Binance has registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
FINTRAC is the country’s financial intelligence unit. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and terror financing.
The registration details read that the company, BINANCE CANADA CAPITAL MARKETS INC., deals in foreign exchange, money transferring, and virtual currencies.
Any business that deals in any of the aforementioned activities or issues or redeems money orders, traveller’s cheques or anything similar is considered as a Money Service Business (MSB). MSBs are obligated to report to FINTRAC.
This registration testifies Binance’s commitment towards abiding by the local laws. The exchange states that it has a decentralized governance structure. It operates as an umbrella organization with local subsidiaries.
Earlier this year, Binance had to pull out of the Ontario province due to regulatory heat from the province’s regulators.
As per Canada’s business registries records, Binance has 4 entities in Canada; all of them are registered in the Alberta province. Surprisingly all of them obtained the registrations in the ongoing month of December 2021.
Recent reports indicate that the exchange is looking for a global headquarters. Last week it entered into a contract with the Dubai Government to build a crypto hub in the Emirate.
Cryptocurrencies are transnational in nature. Their governance requires global cooperation. This has opened Pandora’s box for regulators.
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