Canada’s financial intelligence unit has revoked the registrations of 50 money services businesses in 2025, with 47 of them related to cryptocurrency operations, as the country intensifies its enforcement against digital asset firms suspected of facilitating money laundering and fraud.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on Monday its most recent action, canceling 23 money services business registrations in what officials described as a significantly accelerated pace of regulatory enforcement. The revoked businesses have 30 days to request a review to potentially overturn the decision.
Finance Minister François-Philippe Champagne said in a Tuesday statement that the cancellations represent part of the government’s latest effort to combat money laundering. FINTRAC is simultaneously “strengthening enforcement and increasing transparency on compliance actions,” according to the minister.
“Our government will continue to monitor and pursue new measures to address risks posed by virtual currency businesses, such as cryptocurrency MSBs and crypto ATMs, which can be used to facilitate money laundering and fraud,” Champagne said. He added that the government “will maintain this momentum” in its crackdown on crypto firms.
The aggressive regulatory action comes amid broader concerns about illicit activity in the cryptocurrency sector. However, traditional financial systems remain the primary channel for money laundering globally.
The Financial Action Task Force estimates that 2% to 5% of global gross domestic product is laundered through traditional financial systems. By comparison, blockchain analytics firm Chainalysis estimates that less than 1% of cryptocurrency transactions are linked to illicit activity.
Traditional financial systems, including wire transfers, have long been exploited for money laundering and other forms of fraud due to their scale and widespread adoption worldwide.
FINTRAC’s enforcement actions have extended beyond registration revocations to include substantial financial penalties against major cryptocurrency platforms operating in Canada.
In October 2024, the financial intelligence unit issued a $126 million fine against crypto platform Cryptomus for a range of alleged violations. The penalties stemmed from the platform’s failure to report suspicious transactions on 1,068 separate occasions in July 2024 alone, according to FINTRAC.
Cryptomus was also cited for failing to develop and apply written compliance policies, a fundamental requirement for money services businesses operating under Canadian financial regulations.
One month earlier, in September 2024, crypto exchange KuCoin received a $14 million penalty for multiple violations. The enforcement action alleged that KuCoin failed to register as a foreign money services business with FINTRAC, a mandatory requirement for cryptocurrency exchanges serving Canadian customers.
KuCoin was additionally cited for failing to report large cryptocurrency transactions with the required information, undermining FINTRAC’s ability to monitor potential money laundering activities.
The escalating enforcement actions signal a marked shift in Canada’s approach to cryptocurrency regulation. The country is moving from a relatively permissive regulatory environment to one characterized by strict compliance requirements and aggressive penalties for violations.
The focus on cryptocurrency ATMs and money services businesses reflects concerns that these services can provide relatively anonymous on-ramps and off-ramps for digital assets, potentially facilitating illicit financial flows.
Minister Champagne’s statement emphasized that the current pace of enforcement represents a “significantly increased” level of action compared to previous years. The concentration of revocations in the cryptocurrency sector, accounting for 94% of the total 50 cancellations, underscores where Canadian regulators are directing their attention.
The 23 most recent registration cancellations announced Monday followed a pattern established earlier in 2025, when FINTRAC had already revoked 27 other money services business registrations, bringing the year’s total to 50.
As Canada continues its regulatory crackdown, cryptocurrency firms operating in the country face mounting pressure to ensure full compliance with anti-money laundering regulations and reporting requirements or risk substantial penalties and loss of operating licenses.
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