A CBC investigation found crypto-cash services operating across Canada that allow people to convert cryptocurrency into large amounts of cash with limited identity checks.
The investigation examined both local businesses and offshore services. In one Toronto test, a reporter collected $1,900 in cash after sending USDT to a foreign exchange service in Ukraine known as 001k. The transaction reportedly required only a $5 bill serial number for verification.
New findings raise questions about how Canada’s anti-money-laundering rules work when crypto transactions move between registered Canadian businesses and overseas services.
Anti-money laundering authorities in Canada have revoked registrations of nearly three dozen cryptocurrency businesses following the @TorontoStar’s reporting for the ICIJ-led #CoinLaundry investigation.
Read the latest: https://t.co/nfgxbj2KBG
— ICIJ (@ICIJorg) March 24, 2026
Compliance rules face an enforcement challenge
FINTRAC requires money services businesses operating in Canada, as well as foreign money services businesses serving Canadian clients, to register with the agency. Dealing in virtual currencies is among the activities covered by the registration regime.
The rules also require identity verification for virtual-currency transfers and exchanges worth $1,000 or more. Large cash transactions have a higher $10,000 identification threshold.
CBC’s investigation found examples that appeared to operate outside these requirements. In Quebec, reporters were reportedly offered up to $1 million in cash in exchange for USDT without identification. Chainalysis data cited in the investigation showed 001k had processed more than $14.8 billion in transfers since mid-2022 despite not being registered with FINTRAC.
The concern is not simply that unregistered businesses exist. Offshore services can create a compliance gap when Canadian users can access cash-conversion services outside Canada’s reporting and identification system.
FINTRAC says operating an unregistered money services business is an offence and provides a process for reporting suspected unregistered operators.
Also Read: This Week in Crypto: Canada Fights Back and Bitcoin Gets a Bull Call
Canada is improving its crypto framework
Canada is also building a regulatory framework for fiat-backed stablecoins. Budget 2025 proposed legislation requiring issuers to register with the Bank of Canada, maintain 1:1 reserves and meet requirements covering redemption, risk management and data security. The government expects the framework to come into force in 2027.
That framework could give regulators greater visibility over stablecoin issuers, but it will not by itself eliminate the risks exposed by informal cash-conversion networks.
Recent enforcement shows that Canadian authorities are willing to pursue crypto-related financial crime. In September, the RCMP seized $56 million linked to TradeOgre, demonstrating the scale at which authorities can act when suspicious crypto activity is identified.
The harder problem is finding smaller, fragmented operators before their services become established channels for moving illicit funds.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
