Under a new zero-tolerance policy, Canada’s Financial Business Reporting and Analysis Center (FINTRAC) will revoke the licenses of Bitcoin (BTC) and crypto service providers and replace dozens of money services businesses (MSBs) that fail to meet new compliance standards.
The attacks reached a critical mass on March 17, when Finance Minister François-Philippe Champagne approved the cancellation of 23 licenses in one day. This measure brings the total number of cancellations by 2026 to 50, of which 47 only corresponds to entities linked to crypto assetsincluding exchanges, custodians, and ATM operators.
The relevance of these actions lies in the speed with which the government of Canada’s capital, Ottawa, decided to act. According to Minister Champagne, this record number reflects a deliberate strategy to reduce the risk of money laundering and fraud.
There were 23 MSB license revocations today alone. This means the pace of action has increased significantly, and our government intends to maintain this momentum.
François Philippe Champagne.
This regulatory strengthening is supported by Bill C-12, which aims to give FINTRAC greater enforcement and supervisory powers. Registered losses affect not only domestic companies, but also international operators We were based in Slovakia and the United Kingdom, and provided services within Canada.
For companies in this sector, license expiration usually occurs as a result of administrative processes due to lack of update data. It may also be due to failure to report suspicious transactions or simply failure to meet regulatory authorities’ thorough information requirements.
While sectors of the traditional financial system have hailed the move as a necessary step to protect market integrity, the Bitcoin and other digital asset communities are watching with caution. The main concern is that this regulatory lock Restrict access to legitimate services and suffocate small businesses These are people who don’t have the financial power to cover the increasing costs of compliance.
Affected businesses have 30 days to request a review of their case. However, with the recent creation of the Canadian Financial Crimes Agency and increased resources for the Royal Mounted Police (RCMP), the message from Ottawa is that Canada’s Bitcoin ecosystem is no longer a gray area, but an area of intense oversight.
Mirror of the South: Paraguay’s vigilance
This phenomenon of institutional pressure is not limited to the Northern Hemisphere. In the Southern Cone, Paraguay, which was emerging as a great regional haven for Bitcoin mining and economic freedom, is now facing a similar reorientation as Canada following the implementation of General Resolution 47/26.
As CriptoNoticias recently reported, under the supervision of the Department of National Tax and Revenue (DNIT), the South American country has transitioned from an open-door environment to active surveillance that requires sensitive technical details. this This also includes manipulating digital asset wallets and hashing addresses.
Similar to Canada, increased regulation in Paraguay is forcing a potential exodus of users and entrepreneurs to more competitive jurisdictions such as Panama and El Salvador, turning a historic opportunity for digital leadership into a scenario of immigration uncertainty.