Canada Revokes 23 Crypto MSB Registrations

Canada's financial intelligence agency has revoked the registrations of 23 cryptocurrency-related money services businesses in a coordinated enforcement action, escalating the nation's campaign against money laundering risks in the digital asset sector.

The Financial Transactions and Reports Analysis Centre of Canada, known as FINTRAC, announced the revocations on Tuesday, stripping the affected firms of their legal right to operate as registered money services businesses under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. All 23 entities provided cryptocurrency services, including exchanges and transfers, and two operated without a physical presence in Canada: Finax, based in Bratislava, Slovakia, and Commerce Plex, registered in Luton, England. Both also offered currency exchange and money transfer services.

The action targeted businesses for various compliance failures, such as failing to respond to information requests in a timely manner, neglecting to update registration details, and prior convictions related to money laundering or terrorist financing. FINTRAC, which oversees money services businesses nationwide, requires these entities to implement...