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 Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term 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.

In a separate report, Canadian securities regulators dismantled more than thousands of fraudulent investment and cryptocurrency websites as part of a coordinated national drive to tackle online financial crime.

The Canadian Securities Administrators (CSA) said the sweep, conducted between June 5, 2025, and February 12, 2026, led to the deactivation of 7,586 scam platforms linked to more than 13,000 URLs.

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Announced during Fraud Prevention Month, the operation marked an intensified effort to disrupt online schemes targeting Canadian investors and to deter would‑be fraudsters. It signaled a broader regulatory shift toward proactive detection and rapid takedown of suspicious platforms rather than relying solely on traditional, slower enforcement channels.

When FINTRAC Pulls Registration

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 Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term policies.

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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.

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.