Canada crypto market update: how scam fears and weak controls deepen the crackdown

Canada’s anti-money-laundering agency, FINTRAC, has revoked 47 crypto-related money services business registrations since Jan. 1, 2026. In total, this year, 50 MSB registrations have been canceled, including 23 in the most recent enforcement action. In a parallel effort, the Canadian Securities Administrators deactivated 7,586 fraudulent investment and cryptocurrency platforms in a sweep conducted from June 5, 2025, through Feb. 12, 2026.

Finance Minister François-Philippe Champagne called the cancellations ‘a significantly increased pace of action’ and pledged to keep up pressure to target money laundering and fraud risks. He outlined plans to monitor and consider new measures for virtual currency businesses, including crypto MSBs and crypto ATMs, which regulators link to illicit finance risks.

The CSA reported a coordinated national effort that took thousands of scam operations offline, removing platforms tied to more than 13,000 URLs. Announced during Fraud Prevention Month, the campaign emphasized faster detection and takedowns of suspicious sites targeting Canadian investors, rather than relying only on traditional enforcement routes. Earlier this month, U.S., UK and Canada launched Operation Atlantic to curb crypto phishing scams that drained millions from users in 2025.

Under federal rules, any MSB operating in Canada must keep proper records, verify customer identities, maintain a compliance program, report specified financial transactions and register with FINTRAC. Registration confirms that a business meets legal requirements but is not an endorsement or a license. FINTRAC can deny or revoke registration if a firm is ineligible, fails to answer clarification requests within 30 days, does not respond to information demands, does not update core details such as name or address, or fails to assist the regulator. Firms have 30 days to request a review after a denial or revocation.

Penalties issued late last year preceded the registration actions. FINTRAC fined platform Cryptomus $126 million for alleged violations, including failing to report suspicious transactions on more than 1,000 occasions in July 2024 and lacking written compliance policies. Crypto exchange KuCoin received a $14 million penalty for allegedly failing to register as a foreign MSB and for not reporting large virtual currency transactions with complete information, a reminder that compliance questions can matter as much as user experience in any KuCoin review.