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- Canada revokes 23 crypto firms over AML failures and reporting rule breaches.
- FINTRAC cites weak records, missed responses, and non-compliance risks.
- Enforcement expands to foreign crypto firms, ATMs, and cross-border activity.
The Canadian authorities have revoked the registration of 23 cryptocurrency-related companies in a significant crackdown. The Financial Transactions and Analysis Centre of Canada has confirmed this action, citing non-compliance with regulatory requirements related to financial crime controls.
According to FINTRAC, the cancellations are part of measures to prevent money laundering and illegal financial deals. The agency emphasized that companies must adhere to stringent reporting and record-keeping regulations. Companies that fail to comply with the rules will lose their licenses.
The move has been described as a step-up in enforcement by Canada’s finance minister, François-Philippe Champagne. He also said that the government is going to continue at this pace. He also warned of the risks that are associated with businesses that involve virtual currency.
Foreign Firms Face Crypto Compliance Crackdown
Authorities confirmed that some affected firms operate outside Canada. Finast is based in Slovakia, while Commerce Plex is registered in the United Kingdom. Both companies offer money exchange and transfer services alongside crypto products.
FINTRAC explained that registrations can be revoked for several reasons. These include failing to respond to information requests or not keeping records updated. Firms may also lose status if they do not meet registration requirements.
All of the 23 companies were registered as money services businesses under federal law. These companies must verify the identity of the customers and make suspicious transaction reports. In addition, the companies are required to have compliance programs in place and approved by the management.
The regulator said that failure to comply with the regulations will result in penalties or criminal charges. Companies that are found to be non-compliant with the regulations will face penalties, including criminal charges. The companies will lose registration and will not be able to operate legally in Canada.
This action is the latest in a series of enforcement cases targeting the crypto industry. In October, FINTRAC imposed a $126 million fine on Cryptomus. The fine was imposed for failing to report thousands of suspicious transactions.
Canada Broadens Crypto Crackdown After Record Fine
Many of these transactions, according to authorities, were associated with serious crimes. These crimes included ransomware, sanctions evasion, and child exploitation cases. This fine recorded the highest penalty in the history of FINTRAC.
The recent cancellations demonstrate a wider approach to enforcement. Canada is no longer focusing on individual companies. The country is moving to take action against several companies at once.
In February 2026, Champagne asked FINTRAC to step up the fight against illegal financial activities. This includes companies operating across borders and crypto ATMs. The country is also reviewing foreign-based crypto companies.
Canada has regulated crypto service providers since June 2020. These companies are considered part of the financial system. The country says the enforcement will still address risks related to digital assets.
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