Canadian regulator FINTRAC has revoked the registrations of 50 financial service providers since the beginning of 2026, 47 of which were active in the crypto sector. The measure is part of a broader government strategy to crack down on money laundering and financial fraud.
Finance Minister François-Philippe Champagne announced that this approach will be continued in the coming period. According to him, crypto companies in particular, such as trading platforms and crypto ATMs, pose an increased risk of abuse.
FINTRAC accelerates supervision of crypto MSBS
FINTRAC, Canada’s Financial Transactions and Reports Analysis Centre, announced that another 23 licenses have recently been revoked. Companies that lose their registration have 30 days to appeal.
The Canadian government speaks of an accelerated enforcement strategy. Champagne emphasizes that supervision will not only be expanded, but also made more transparent. This should make it clearer how companies must comply with regulations.
Canada focuses on risks within the crypto sector
According to the minister, crypto companies can be used for money laundering and fraud. That is why the government continues to develop new measures to limit these risks.
The focus on crypto comes at a time when regulators worldwide are tightening their control over the sector. In Canada, the focus is on companies that facilitate financial transactions without adequate supervision or reporting.
Traditional financial systems are still the largest source of money laundering
Despite the attention paid to crypto, figures show that traditional financial systems still play the largest role in money laundering. The Financial Action Task Force (FATF) estimates that 2 to 5 percent of global GDP is laundered through regular financial channels.
By comparison, according to blockchain analytics firm Chainalysis, less than 1 percent of all crypto transactions are linked to illegal activities.
Millions in fines for Cryptomus and KuCoin
FINTRAC’s stricter approach is also evident from recent sanctions against large crypto companies. In October, crypto platform Cryptomus was fined $126 million. The company allegedly failed to report more than a thousand suspicious transactions and did not have adequate compliance guidelines.
A month earlier, crypto exchange KuCoin was fined $14 million. The exchange allegedly failed to register properly with FINTRAC and provided insufficient information about large transactions.
Stricter regulations for crypto companies in Canada continue
By revoking dozens of licenses and imposing high fines, Canada is showing that it is further tightening the rules for crypto companies. The government wants to combat financial crime and increase transparency within the sector.
For companies operating in the Canadian crypto market, this means that regulatory compliance and transaction reporting are becoming increasingly important.
Source: https://newsbit.nl/canada-trekt-vergunningen-van-47-cryptobedrijven-in-vanwege-strengere-anti-witwasregels/
