Home
Cryptocurrency
Cryptocurrency News
Canada Revokes Registrations of Crypto Firms in Crackdown on Compliance Failures

Canada Revokes Registrations of Crypto Firms in Crackdown on Compliance Failures

Regulator targets crypto firms failing to meet AML and reporting standards.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 20 March 2026 11:41 IST

Canada Revokes Registrations of Crypto Firms in Crackdown on Compliance Failures

Photo Credit: Unsplash/Kanchanara

Canada increases scrutiny on crypto firms over AML compliance lapses

Click Here to Add Gadgets360 As A Trusted Source

Highlights

FINTRAC revokes 43 crypto business registrations
Action targets gaps in AML compliance and reporting
Global coordination rises to tackle crypto-related crime

Canada's financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), has revoked the registrations of 43 cryptocurrency businesses as part of a wider crackdown on non-compliant firms. This is part of a broader effort to rein in firms that aren't playing by the rules. The focus is on money services businesses, or MSBs, that haven't been keeping up with anti-money laundering (AML) and reporting obligations. This action underscores the increasing regulatory attention on the crypto world in Canada. Authorities are clearly trying to tighten control and make sure digital asset platforms stick to the existing financial regulations.

Authorities Step Up Enforcement Against Non-Compliant Firms

The recent enforcement actions come amidst regulators' increased scrutiny, as they are becoming more outspoken about the risks connected to illicit financial transactions. As per the Financial Action Task Force, money laundering accounts for two to five percent of global economic output. On the other hand, less than 1 percent of cryptocurrency transactions are linked to illegal activity, according to Chainalysis, a blockchain analytics firm. This disparity feeds the ongoing debate over the role of digital assets in financial crime and the urgent need for clearer regulations.

Recently, FINTRAC has intensified its enforcement actions against cryptocurrency firms. The $126 million (roughly Rs. 1,176 crore) fine imposed on the cryptocurrency platform Cryptomus is a prominent illustration of this. Along with shortcomings in its compliance procedures, the regulator listed alleged violations, including the failure to report suspicious transactions 1,068 times in July 2024.

Polymarket Acquires DeFi Startup Brahma to Strengthen Infrastructure

Officials have stated clearly that cryptocurrency companies must follow the same regulatory requirements as traditional financial institutions, particularly with regard to transaction monitoring and reporting of potentially illegal activity.

The development comes amidst broader international efforts to tackle crypto-related financial crime. In an effort to improve cross-border enforcement and disrupt cryptocurrency fraud networks, authorities in the US, UK, and Canada recently started Operation Atlantic. The partnership demonstrates how regulators are becoming more coordinated as the use of digital assets spreads throughout the world.

Overall, Canada's most recent enforcement action indicates a more stringent regulatory approach to cryptocurrency companies that disregard AML regulations. While the move could improve trust and accountability in the sector, it may also raise compliance costs for smaller firms and limit market participation. As oversight intensifies globally, crypto businesses will need to strengthen internal controls to operate within evolving regulatory frameworks.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Cryptocurrency Prices across Indian exchanges

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cryptocurrency, Bitcoin, Crypto Regulations

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More