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.

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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.

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.

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.

When FINTRAC Pulls Registration

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.