FINTRAC’s $19.5M Fine Is a Wake-Up Call for the Cryptocurrency Industry Operating in Canada
In September 2025, FINTRAC announced a record $19.5 million administrative monetary penalty (AMP) against a cryptocurrency exchange, which was permanently banned by the Ontario Securities Commission previously, operating in Canada for failing to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). This should come as no surprise to anyone who has been following the recent regulatory changes and the industry overall. There were recent updates to the value of AMPs FINTRAC could administer, and given the degree to which this exchange operated, it is clear that the AMP is meant to remind those that are not willing to follow the regulations that they absolutely should or risk heavy fines and the regulatory risks associated with it.
While the enforcement was directed at this firm, the implications are clear: cryptocurrency exchanges, wallet providers, and other virtual asset service providers (VASPs) must take Canadian AML obligations seriously.
Why the Crypto Sector Is in the Spotlight
Cryptocurrencies are inherently attractive to criminals due to their borderless, pseudonymous, and fast-moving nature. Regulators view the sector as high-risk for:
Laundering illicit proceeds through large crypto-to-fiat or crypto-to-crypto transactions
Moving funds quickly across jurisdictions
Exploiting gaps in suspicious transaction monitoring and reporting
For these reasons, FINTRAC has made it clear that crypto businesses will face scrutiny equal to, if not greater than, traditional financial institutions.
Core AML Obligations for Cryptocurrency Exchanges in Canada
If you operate in Canada—or service Canadian clients—your business must:
Register with FINTRAC as a Money Services Business (MSB) or Foreign MSB if outside Canada but dealing with Canadian customers
Report large virtual currency transactions of $10,000 or more (single or related transactions)
Submit suspicious transaction reports (STRs) when there are reasonable grounds to suspect criminal or terrorist activity
Keep accurate records of transactions and customer information
Implement a compliance program with policies, risk assessments, employee training, and an independent effectiveness review
Failure to meet these requirements exposes businesses to severe financial penalties, reputational damage, and possible restrictions on operations.
FINTRAC Enforcement Trends: The Numbers Don’t Lie
In the past year alone, FINTRAC issued 23 Notices of Violation, totaling more than $25 million in penalties—the highest ever in its history. Crypto businesses are firmly within the regulator’s sights, and enforcement is accelerating.
For the sector, the message is clear: compliance is not just a legal requirement, it’s a business imperative.
Protecting Your Cryptocurrency Exchange
Developing and maintaining a compliant AML program can be challenging for crypto firms, given the evolving regulatory landscape and unique risks of digital assets. Platino Consulting’s team of AML compliance specialists can help you by providing:
Registration support with FINTRAC as an MSB or Foreign MSB
Tailored AML compliance frameworks designed for crypto operations
Training on crypto-specific money laundering red flags
Ongoing compliance advisory and risk assessments
Independent reviews to test program effectiveness
Contact Platino Consulting for a consultation today.
