Canada is increasing efforts to reduce the risks of money tied to digital currencies
Canada has intensified its oversight of cryptocurrency businesses, with the country’s financial intelligence unit revoking licenses of 47 crypto-related money services businesses (MSBs) this year. These actions are part of broader efforts to reduce risks of money laundering and financial fraud tied to virtual currency operations. The latest round of cancellations reflects a growing focus on compliance within the crypto sector.
FINTRAC announced that it revoked 23 MSB registrations in its most recent enforcement move. Businesses affected by revocation have a 30-day window to request a review, offering a chance to appeal the decision. The regulator said these measures aim to increase transparency and strengthen adherence to anti-money laundering standards.
François-Philippe Champagne described the cancellations as part of an ongoing government initiative to combat illicit activity in virtual currency markets. He noted that crypto MSBs and crypto ATMs can pose risks by facilitating money laundering and fraud, and authorities will continue monitoring these operations closely.
Crypto firms have faced major penalties in recent months. In 2024, Cryptomus was fined $126 million for failing to report suspicious transactions and lacking proper compliance policies. Another exchange, KuCoin, received a $14 million penalty for operating without proper registration and failing to report large transactions as required.
Despite these actions, estimates suggest that cryptocurrency represents a smaller share of illicit financial activity compared to traditional finance. The Financial Action Task Force estimates 2 to 5% of global GDP is laundered through conventional systems, while Chainalysis reports less than 1% of crypto transactions are linked to illegal activity.
