Canadian regulator issues record penalty to crypto platform Xeltox for AML violations
The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) has imposed a record C$176.9 million ($126 million) fine on Xeltox, also known as Cryptomus, calling it an “unprecedented failure in anti–money laundering compliance.”
Fintrac said Xeltox ignored over 2,500 suspicious transactions linked to crimes such as fraud and ransomware schemes.The British Columbia Securities Commission (BCSC) had already suspended the company’s operations in May for functioning as an unregistered exchange.
Regulators also found that Xeltox failed to file mandatory reports for more than 1,500 incoming crypto transactions worth C$10,000 or more each from individual clients.
According to Fintrac’s enforcement notice, this represents “a complete breakdown of compliance oversight” at one of Canada’s most active cryptocurrency platforms.
Violations left regulators no choice
Fintrac Director Sarah Paquet said the agency was “compelled to take these unprecedented actions” due to the severity of the crimes linked to the unreported transactions. She added that Xeltox “failed to meet its legal obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.”
The law requires all registered crypto companies in Canada to promptly detect and report suspicious activity, but according to Paquet, Xeltox repeatedly ignored this rule.
This is not the first time the company has faced regulatory issues. In May 2024, the BCSC accused Cryptomus (formerly Certa Payments Ltd.) of operating as an unregistered exchange, leading to a temporary ban on trading securities and derivatives until June.
That enforcement effectively froze Xeltox’s operations in British Columbia, with the regulator warning that further violations could result in additional penalties if trading resumed without authorization.
As we wrote, Canada first to approve spot Solana ETFs with staking
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
