Canada ramps up crypto crackdown after 47 firm takedowns

TLDR

• Canada revoked 50 money services business registrations in 2026, including 47 linked to crypto firms.
• FINTRAC announced 23 new cancellations and gave affected firms 30 days to request a review.
• Finance Minister François-Philippe Champagne said the government will maintain its enforcement momentum.
• FINTRAC fined Cryptomus $126 million for failing to report 1,068 suspicious transactions and lacking compliance policies.
• KuCoin received a $14 million penalty for failing to register and report required crypto transactions.

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Canada has revoked 50 money services business registrations this year, including 47 tied to crypto firms. The Financial Transactions and Reports Analysis Centre confirmed the latest 23 cancellations on Monday. Finance Minister François-Philippe Champagne said the government will maintain enforcement pressure.

Canada Accelerates Enforcement Against Crypto MSBs

The Financial Transactions and Reports Analysis Centre said it revoked 23 MSB registrations in its latest action. The agency confirmed that 47 of the 50 revoked registrations this year relate to crypto businesses.

FINTRAC stated that any revoked business has 30 days to request a review. The agency said it will assess each request under its compliance framework.

Minister François-Philippe Champagne addressed the actions in a statement on Tuesday. He said the cancellations reflect “an increased pace of action, and our government will maintain this momentum.”

He said the government aims to combat money laundering and fraud through stricter oversight. He added that FINTRAC is “strengthening enforcement and increasing transparency on compliance actions.”

Champagne said the government will continue targeting risks linked to virtual currency businesses. He named cryptocurrency MSBs and crypto ATMs as areas of focus.

He said such services “can be used to facilitate money laundering and fraud.” He confirmed that authorities will monitor and pursue new measures where needed.

FINTRAC operates as Canada’s financial intelligence unit. It oversees compliance with anti-money laundering and counter-terrorist financing laws.

The agency requires MSBs to register and report certain transactions. It also mandates internal compliance programs and suspicious transaction reporting.

Cryptomus and KuCoin Face Penalties as Oversight Expands in Canada

FINTRAC increased enforcement actions against crypto platforms during the past year. The agency issued large monetary penalties against two exchanges.

In October, FINTRAC fined Cryptomus $126 million for alleged compliance failures. The agency said the platform failed to report 1,068 suspicious transactions in July 2024.

FINTRAC also said Cryptomus did not develop and apply written compliance policies. The agency listed multiple violations under Canada’s reporting requirements.

A month earlier, FINTRAC penalized KuCoin with a $14 million fine. The agency said KuCoin failed to register as a foreign money services business.

FINTRAC also alleged that KuCoin failed to report large crypto transactions with the required details. The agency said the platform did not meet reporting standards.

Traditional financial systems have long faced money laundering risks due to scale. The Financial Action Task Force estimates that 2% to 5% of global GDP is laundered through traditional channels.

By comparison, Chainalysis estimates that less than 1% of crypto transactions link to illicit activity. Authorities continue to apply reporting rules across all regulated sectors.

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