worldcoinindex.com
Canada is ramping up its oversight of the digital asset sector, with regulators intensifying efforts to police crypto-related financial activity and curb illicit flows.
The country’s financial intelligence agency, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), has already revoked the registrations of 50 money services businesses (MSBs) in 2026—47 of which were tied to cryptocurrency operations. In its latest move, the watchdog canceled 23 registrations in a single sweep, signaling a faster and more aggressive enforcement strategy.
Affected firms have a 30-day window to appeal the decision and seek reinstatement.
Canada’s Finance Minister, François-Philippe Champagne, said the actions reflect a broader push to strengthen anti-money laundering safeguards. He emphasized that authorities are increasing both enforcement intensity and transparency around compliance failures.
The latest wave of deregistrations marks a notable escalation in pace, with officials indicating that further action is likely. Regulators are particularly focused on risks linked to crypto-focused MSBs and crypto ATMs, which authorities believe can be exploited for fraud and laundering schemes.
Despite the scrutiny on digital assets, traditional financial channels remain a major concern. Global estimates suggest that between 2% and 5% of worldwide GDP is laundered through conventional systems like wire transfers. In contrast, blockchain analytics indicate illicit crypto activity accounts for less than 1% of total transaction volume.
Still, enforcement against crypto firms is tightening. Last year, FINTRAC imposed a hefty $126 million penalty on crypto platform Cryptomus, citing failures such as not reporting over 1,000 suspicious transactions and lacking proper compliance frameworks.
Similarly, exchange KuCoin was hit with a $14 million fine for allegedly operating without proper registration and failing to report large transactions with required details.
As regulators continue refining their approach, Canada appears set to maintain pressure on the crypto sector—aiming to close compliance gaps while keeping pace with the rapid growth of digital finance.