Canada’s financial intelligence agency has revoked the registrations of 50 money services businesses (MSBs) so far this year—47 of them tied to crypto—with officials signaling that enforcement efforts will continue.
The Financial Transactions and Reports Analysis Centre of Canada said Monday that its latest action involved canceling 23 MSB registrations.
Finance Minister François-Philippe Champagne stated Tuesday that the move is part of a broader push to combat money laundering, with FINTRAC also stepping up enforcement and improving transparency around compliance actions.
He noted that the 23 revocations mark “a significantly increased pace of action,” adding that the government intends to sustain that momentum.
“Our government will continue to monitor and pursue new measures to address risks posed by virtual currency businesses, including crypto MSBs and crypto ATMs, which can be used to facilitate money laundering and fraud,” Champagne said.
Traditional financial systems, such as wire transfers, have long been exploited for money laundering and fraud due to their scale and widespread use. The Financial Action Task Force estimates that between 2% and 5% of global GDP is laundered through traditional channels, while Chainalysis puts the share of illicit crypto transactions at under 1%.
Crypto platforms face enforcement action
The Financial Transactions and Reports Analysis Centre of Canada has intensified its crackdown on crypto firms, including issuing a $126 million fine to Cryptomus in October for multiple alleged violations. These included failing to report suspicious transactions on 1,068 occasions in July 2024 and not maintaining adequate compliance policies.
A month earlier, crypto exchange KuCoin was fined $14 million for similar breaches, including allegedly failing to register as a foreign money services business with FINTRAC and not properly reporting large crypto transactions.
