Canadian authorities have recently revoked the registrations of dozens of cryptocurrency businesses following a growing investigation into unlawful crypto operations, highlighting a sharper enforcement focus on the industry. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the country’s anti-money laundering regulator, removed 23 cryptocurrency firms from its registry last week, marking a significant step in the oversight of digital currency businesses. Earlier in the month, FINTRAC had also struck off registrations for a dozen other crypto companies, demonstrating a clear escalation in regulatory action.

The revocations come in the wake of a detailed investigation by the International Consortium of Investigative Journalists (ICIJ) and The Toronto Star, which found clusters of crypto businesses operating without proper authorization. These investigations identified numerous cryptocurrency operations in the Toronto area that were unregistered and potentially violating Canadian laws governing money services. Many of these firms focus on converting cryptocurrencies into physical cash, providing services that can be exploited for illicit financial activities.

Canadian Finance Minister François-Philippe Champagne emphasized the government’s commitment to stronger oversight in a statement following the announcements. He stated, “This represents a significantly increased pace of action, and our government will maintain this momentum.” Champagne also underscored plans for further measures aimed at mitigating risks posed by virtual currency businesses, particularly regarding the potential for their use in money laundering and fraudulent activities.

The Toronto Star’s reporting, which was part of ICIJ’s broader Coin Laundry investigation into illegal money flows in the cryptocurrency sector, revealed a striking concentration of unregulated businesses along certain streets in Toronto. In one area alone, investigators documented 50 firms advertising crypto services, many of which appeared to be operating outside the legal........

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