Canada’s financial watchdog has issued a record fine of C$176.9 million ($126 million) against Xeltox, the company known publicly as Cryptomus, for what the Financial Transactions and Reports Analysis Centre of Canada (Fintrac) calls “an unprecedented anti-money-laundering failure.”
The regulators also reportedly discovered that the company didn’t file mandatory reports for more than 1,500 crypto inflows worth C$10,000 or more, each from individual clients. The enforcement order said that this was a complete breakdown of compliance oversight inside one of Canada’s more active crypto platforms.
Fintrac says violations left no choice but record penalty
Fintrac CEO Sarah Paquet said the agency was “compelled to take this unprecedented enforcement action,” citing the seriousness of the crimes connected to those transactions.
She added that Xeltox had “failed to meet its legal obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.” The act requires every registered crypto company in Canada to monitor and report suspicious activity promptly, a rule Xeltox repeatedly ignored, Fintrac said.
This isn’t the first time the company has been in regulatory trouble. In May 2024, the British Columbia Securities Commission (BCSC) accused Cryptomus of operating as an unrecognized exchange, prompting a temporary suspension order that banned it from trading securities or derivatives until June.
Back then, the company was still using its previous name, Certa Payments Ltd. The BC regulator’s move effectively froze Xeltox’s operations in the province, warning it could face further penalties if it resumed trading without authorization.
“Suspicious transaction reporting, in particular, is critical to FINTRAC’s ability to generate actionable financial intelligence for Canada’s law enforcement and national security agencies,” said Fintrac. “Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties are meant to encourage change in the non-compliant behaviour of businesses.”
Ottawa strengthens fraud laws and sets up new crimes agency
The Cryptomus fine also lands as Canadian Prime Minister Mark Carney pushes reforms to combat the country’s growing online fraud crisis. On Monday, Finance Minister François-Philippe Champagne unveiled plans to amend the Bank Act, forcing lenders to adopt stricter measures to detect and prevent scams.
Under the new rules, banks must now get “express consent” from customers before enabling certain money-transfer functions on their accounts. Canadians will also be allowed to set their own transaction limits, giving them more control if fraudsters gain access to their details.
The government said the overhaul follows a surge in consumer losses to online scams, many using artificial intelligence tools to mimic real businesses or officials.
Data from the Canadian Anti-Fraud Centre show that Canadians lost C$643 million ($458 million) last year, but the agency believes that’s only 5% to 10% of total losses, as most victims stay silent.
The finance ministry said it plans to launch a new national financial crimes agency in early 2026, which will unite experts in fraud detection, crypto tracing, and stolen digital asset recovery.
“What people will see in the next budget is fiscal discipline, a shift toward capital formation, and a shift toward long-term prosperity,” Champagne said. We have said that we’ll balance our operating budget by 2028 or 2029, and that we would have a declining deficit-to-GDP ratio over that period.”
The finance minister also said, “Canada can be the supplier of choice to our allies and partners around the world when it comes to critical minerals and rare earths.”
If you're reading this, you’re already ahead. Stay there with our newsletter.
