Canada’s financial crime watchdog has revoked 47
crypto-related money services business (MSB) registrations since the start of
the year as part of a wider clampdown on anti-money laundering failures.
The Financial Transactions and Reports Analysis Centre of
Canada (FINTRAC) has cancelled 50 MSB registrations in total so far, including
23 in its latest enforcement action.
Ottawa Ramps Up AML Enforcement
Finance Minister François-Philippe Champagne said the
cancellations mark “a significantly increased pace of action” and pledged that
the government will maintain this momentum as it targets money laundering and
fraud risks.
He added that authorities will keep monitoring and pursuing
new measures for virtual currency businesses, including cryptocurrency MSBs and
crypto ATMs, which officials say can be used to facilitate illicit finance.
In a separate report, Canadian securities regulators dismantled more than thousands of fraudulent investment and cryptocurrency websites as part of a
coordinated national drive to tackle online financial crime.
The Canadian
Securities Administrators (CSA) said the sweep, conducted between June 5, 2025,
and February 12, 2026, led to the deactivation of 7,586 scam platforms linked
to more than 13,000 URLs.
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Announced during Fraud Prevention Month, the operation marked
an intensified effort to disrupt online schemes targeting Canadian investors
and to deter would‑be fraudsters. It signaled a broader regulatory shift
toward proactive detection and rapid takedown of suspicious platforms rather
than relying solely on traditional, slower enforcement channels.
When FINTRAC Pulls Registration
The push on registrations follows major penalties against
crypto firms late last year. FINTRAC fined platform Cryptomus 126 million
dollars for alleged violations, including failing to report suspicious
transactions on more than 1,000 occasions in July 2024 and lacking written
compliance policies.
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Crypto exchange KuCoin received a 14 million dollar penalty
for allegedly failing to register as a foreign MSB and not reporting large
crypto transactions with complete information.
FINTRAC said MSBs operating in Canada must keep records,
verify customer identities, implement a compliance regime, report specified
financial transactions and register with the agency. Registration confirms that
a business meets legal requirements but does not mean FINTRAC endorses or
licenses the firm.
The agency can deny or revoke registration if a business is
ineligible, does not answer clarification requests within 30 days, fails to
respond to information demands, does not update core details such as name or
address, or fails to assist the agency. Firms have 30 days to request a review
after a denial or revocation.
This article was written by Jared Kirui at www.financemagnates.com.
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