Licence revocations hit unregistered crypto firms in Canada
Enforcement actions escalate as authorities target unregistered crypto firms accused of enabling money laundering through cash conversion services.
Canada has increased crypto oversight, revoking registrations for nearly three dozen firms due to compliance failures. The move follows investigative reporting that uncovered widespread irregularities in the sector.
The Financial Transactions and Reports Analysis Centre of Canada removed 23 companies in one week, adding to previous actions against about a dozen other crypto firms.
Officials described the shift as part of a broader effort to address risks tied to virtual currencies, including fraud and money laundering.
Findings from the International Consortium of Investigative Journalists’ investigation highlighted clusters of crypto businesses operating without proper registration, particularly in Toronto.
Many of these services reportedly focused on converting digital assets into cash, raising concerns about gaps in oversight and compliance with anti-money laundering rules.
Authorities also flagged suspicious transaction patterns, including activity linked to wallets allegedly associated with Iran-backed groups. While regulators have promised further action, analysts warn that delayed enforcement and structural weaknesses may continue to expose the system to illicit financial flows.
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