Canada’s anti-money laundering watchdog has sharply increased pressure on crypto businesses. According to the report, FINTRAC has cancelled 50 money services business registrations in 2026, including 47 linked to crypto firms, covering exchanges, wallet providers, and other crypto-related services. The latest round alone included 23 new revocations, showing a much faster enforcement pace.
Revocations Hit Exchanges, Wallets, and Other Crypto Services
FINTRAC requires crypto businesses operating in Canada to register before offering services. They must also keep records, verify customer identities, and report large or suspicious transactions. The current wave of cancellations shows that registration is being treated as an active compliance obligation, not a one-time filing exercise.
Affected firms have a 30-day appeal window. Even with that option in place, the number of cancellations and the speed of recent actions point to a harder line from Canadian authorities. The sweep was not limited to trading platforms. Wallet services and other crypto businesses were included as well.
Large Penalties Add to the Pressure
Regulators have paired license cancellations with major financial penalties. The report says Cryptomus was fined $126 million for multiple violations, including failure to report more than 1,000 suspicious transactions. KuCoin was fined $14 million for operating without proper registration and for failing to report large transactions.
Those cases show how enforcement is being applied. Registration failures, weak transaction monitoring, and missed reporting obligations are being treated as core breaches, with consequences that can include both loss of registration and large fines.
Anti-Money Laundering Effort Expands
Finance Minister Francois Philippe Champagne said the move is part of Canada’s effort to combat money laundering and fraud. The government is also providing extra support to law enforcement and plans to create a new financial crimes agency to strengthen supervision.
Authorities argue that many crypto firms still fall short on transaction monitoring, reporting systems, and internal compliance controls. Canada’s latest actions are aimed at reducing illicit finance risks and making sure crypto platforms, related services, and crypto ATMs follow the rules.
Higher Compliance Costs Could Squeeze Smaller Firms
The report also cited figures from the Financial Action Task Force, which said 2% to 5% of global GDP is laundered through traditional finance, compared with less than 1% in crypto. That comparison suggests the money laundering problem reaches far beyond digital assets, even as Canada keeps crypto firms under tight scrutiny.
For larger companies, stricter reporting and monitoring standards mean higher compliance spending. For smaller operators, the burden may be harder to absorb. The report notes that tougher rules and rising costs are making it more difficult for smaller crypto firms to stay in business.