Canada’s Crypto Oversight Failures Expose AML Loopholes in Registered and Unregistered Platforms
Canadian regulators are grappling with systemic failures in cryptocurrency oversight as underground transactions circumvent Anti-Money Laundering protocols. A cross-border investigation reveals both FINTRAC-registered and unregistered platforms enabling illicit flows through crypto-to-cash services.
The probe uncovered Toronto-based operators processing $1,900 cash payouts against USDT deposits to Ukrainian exchange 001k with minimal verification. This mirrors broader patterns of regulatory arbitrage where exchanges exploit Canada's fragmented enforcement regime.
While no specific coins were named in violations, the findings spotlight persistent vulnerabilities in fiat off-ramps. The absence of tagged exchanges in documented cases suggests either deliberate obfuscation or jurisdictional challenges in tracing offshore platforms.
