Canada Revokes 50 MSB Licenses with Crypto Firms Accounting for Most Actions

Highlights:

• Canada Revokes 50 MSB licenses this year, with 47 linked to crypto firms.
• FINTRAC cancelled 23 registrations in one action and increased enforcement speed.
• Regulators fined crypto platforms for failing to report transactions and meet compliance rules.

Canada’s financial intelligence unit has revoked 50 money services business registrations this year, with 47 linked to crypto firms. FINTRAC confirmed that it cancelled 23 registrations in its most recent enforcement action against non-compliant firms.

🚨LATEST: 47 CRYPTO FIRMS HIT IN CANADA’S ENFORCEMENT CRACKDOWN

Canada has revoked registrations of 50 money services businesses this year. Out of these, 47 were tied to cryptocurrency-related operations.

Authorities are targeting entities suspected of weak compliance… pic.twitter.com/sQzmsHqdhO

— BSCN (@BSCNews) March 19, 2026

Each affected business now has 30 days to request a formal review of the revocation decision. FINTRAC examines reporting history, regulatory responses, and operational records before removing a firm. The agency relies on documented compliance failures when making these decisions.

Several firms failed to meet specific regulatory requirements, while others did not respond to official information requests within the required timelines. Meanwhile, others failed to update registration records or maintain accurate transaction data. In addition, some businesses no longer met the eligibility conditions required under Canadian law.

The enforcement action also included firms operating outside Canada while serving Canadian users. Finast, registered in Slovakia, lost its authorization during this round. Commerce Plex, based in the United Kingdom, also had its registration revoked. Both firms offered crypto services alongside traditional money transfer and exchange operations.

Canada Revokes Crypto Firms’ Registrations While Targeting Digital Asset Risks

Canada has intensified its enforcement activities to minimize risks associated with digital asset business and their associated payment channels. Finance Minister François-Philippe Champagne affirmed that authorities have stepped up enforcement measures throughout the industry. He said that the authorities will keep up this rate as they tackle new risks.

He stated, “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.”

The regulators are paying attention to crypto MSBs and crypto ATM operators because they process transactions. These avenues facilitate the quick flow of money, and this poses a problem when companies do not have adequate tracking mechanisms. Law enforcers are evaluating how operators authenticate users and monitor suspicious activity.

FINTRAC has also improved transparency by making more comprehensive enforcement actions and compliance findings public. The agency lists concrete violations and describes how firms did not comply with the regulatory expectations. This practice assists companies in knowing what regulators demand.

Traditional financial systems still account for a larger share of global illicit financial activity. Banks and wire services process large volumes of transactions across multiple regions each day. This scale allows bad actors to hide suspicious activity within legitimate transaction flows. The Financial Action Task Force estimates that 2% to 5% of the global GDP moves through illicit financial channels each year.

In a related development, the Canadian Investment Regulatory Organization (CIRO) published its Digital Asset Custody Framework, which explains what dealers running crypto trading platforms are expected to do.

CIRO has published a new Digital Asset Custody Framework, setting clear expectations for the custody of #digitalassets by Dealer Members operating  #cryptoplatforms (CTPs) in Canada. Read more in our news release: https://t.co/E0MFRnwnfN pic.twitter.com/3hzlg4yZ2u

— CIRO / OCRI (@CIRO_OCRI) February 3, 2026

Recent Fines Highlight Escalating Compliance Pressure on Crypto Platforms

FINTRAC has issued major penalties against crypto platforms that failed to meet regulatory requirements. The agency fined crypto exchange KuCoin $14 million last year after identifying multiple compliance violations. Regulators found that the exchange failed to register properly and did not report large transactions with the required details.

One month later, FINTRAC imposed a $126 million fine against crypto platform Cryptomus. Investigators found that the company failed to report 1,068 suspicious transactions. The platform also lacked written compliance policies required to manage financial activity.

Authorities linked several unreported transactions to serious financial crime risks, including ransomware payments and sanctions evasion activity. Regulators also identified gaps in transaction monitoring systems used by the platform. These issues showed that the firm failed to detect and report suspicious behavior.