Canada is intensifying its scrutiny of cryptocurrency firms, with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) revoking the registrations of nearly three dozen businesses. This action follows investigations into crypto services operating unlawfully, particularly those specializing in converting cryptocurrency to physical cash.
The move signifies a notable increase in enforcement actions related to money transmitters and a heightened focus on crypto businesses, according to experts. Finance Minister François-Philippe Champagne stated the government is committed to addressing risks posed by virtual currency businesses that could be used for money laundering and fraud. This commitment includes pursuing new measures and maintaining the current momentum in enforcement.
FINTRAC's recent actions involved removing 23 crypto firms from its registry of businesses permitted to provide money services, with about 50 Money Service Businesses registrations revoked in total in 2026. The agency's website indicates that registrations can be revoked for various compliance failures, including failing to respond promptly to information requests or update records.
These enforcement actions come amid broader international efforts to tackle crypto-related financial crime, including coordinated efforts with the US and UK. While stricter oversight may increase trust and accountability, it could also raise compliance costs for smaller firms and potentially limit market participation.
