The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has revoked the licenses of 50 money services businesses (MSBs) in 2026, with 47 of those being crypto firms. This move is aimed at mitigating money laundering risks and ensuring crypto platforms adhere to regulations. The affected firms, including exchanges and wallet services, have a 30-day window to appeal the decision.
The crackdown comes as Canada increases its efforts to combat financial crime. Finance Minister François-Philippe Champagne has emphasized the government's commitment to maintaining a "significantly accelerated enforcement pace". FINTRAC's website indicates that the revocations stem from compliance failures, such as failure to respond to information requests promptly, failure to meet eligibility criteria, and failure to update records.
Recent actions include a coordinated move against 23 MSBs offering crypto services. Two foreign-based entities, Finast (Slovakia) and Commerce Plex (UK), were also affected. Regulators are imposing heavy fines on non-compliant platforms, with Cryptomus facing a $126 million penalty for multiple violations and KuCoin facing a $14 million penalty for operating without proper registration.
These enforcement actions highlight Canada's alignment with global regulatory tightening. While the aim is to curb illegal activity, the stricter regulations may pose challenges for smaller firms due to increased compliance costs. The government is also providing additional support to law enforcement and planning a new financial crimes agency to strengthen supervision.
