Canada Imposes Record C$176.9 Million Fine on Xeltox Enterprises for Crypto AML Failures

Canadian regulators have levied a historic C$176.9 million penalty against Xeltox Enterprises for systemic anti-money laundering violations. The company failed to file mandatory reports for over 1,500 cryptocurrency transactions exceeding C$10,000 each, marking what officials called a "complete breakdown" of compliance oversight at one of the country's most active crypto platforms.

Fintrac CEO Sarah Paquet stated the agency was compelled to take unprecedented action due to the severity of crimes linked to these transactions. Xeltox repeatedly ignored its obligations under Canada's Proceeds of Crime Act, which requires crypto firms to monitor and report suspicious activities.

This enforcement follows earlier regulatory action in May 2024, when British Columbia securities authorities temporarily suspended the company—then operating as Certa Payments—for running an unregistered exchange. The latest penalty underscores Canada's tightening scrutiny of cryptocurrency compliance as digital asset adoption grows.