Canada’s AML Watchdog Slaps Cryptomus With $126 Million Fine Amid Major Compliance Lapses

Canada’s anti-money laundering (AML) watchdog, The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), recently announced that it had imposed a fine of $126 million on crypto trading platform Cryptomus for failure to report illicit ￰0￱ Slaps $126 Million Fine On Crypto Exchange Cryptomus According to an official announcement on October 22, Canada’s FINTRAC has slapped a massive penalty of $126 million on Vancouver-based digital assets trading platform ￰1￱ exchange was found in breach of multiple federal AML and counter-terrorist financing laws. Notably, the fine imposed by FINTRAC on the trading platform is the largest penalty slapped on a Canada-based virtual assets entity to ￰2￱ failed to report more than 1,000 suspicious transactions between July 1, 2024, and July 31, ￰3￱ addition to the 1,000 unreported transactions, Cryptomus was also found guilty of not reporting 1,500 large digital currency transactions with questionable digital ￰4￱ also failed to comply with a Ministerial ￰5￱ regulator stated that the unreported transactions were largely related to child sexual abuse material, ransomware payments, fraud, and sanctions evasion.

Further, Cryptomus failed to keep its compliance policies ￰6￱ the FINTRAC press release, Cryptomus also did not assess risks of illicit finance, and failed to report crucial business changes as required by ￰7￱ on the development, FINTRAC CEO Sarah Paquet said: Given that numerous violations in this case were connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion, Fintrac was compelled to take this unprecedented enforcement ￰8￱ should be highlighted that the Canadian financial regulator has been having a relatively busy ￰9￱ this year, in February, FINTRAC issued an alert about the role of virtual asset funds in cleaning illicit funds tied to fentanyl and opioid trafficking.

Similarly, in September, the Canadian police confirmed the largest digital assets seizure in the country’s ￰10￱ the time, Canada’s RCMP seized digital assets worth $40 million belonging to Montreal-based crypto exchange TradeOgre. 2025: The Year Of Penalties 2025 has seen an uptick in digital assets entities and traders facing fines for breach of ￰11￱ example, Hungary’s financial watchdog announced that traders could face five years in prison for trading on unauthorized digital assets trading platforms. Similarly, one of the largest global digital assets exchanges by trading volume, OKX, pleaded guilty to operating an unlicensed money transmitting business in the ￰12￱ a result, the exchange was fined $504 ￰13￱ said, some countries’ citizens are pushing back against draconian digital assets ￰14￱ instance, a controversial digital assets bill in Poland – Bill 1424 – is facing pushback from the Polish virtual assets ￰15￱ press time, Bitcoin trades at $109,401, up 1.1% in the past 24 hours.