Canada’s financial crime watchdog FINTRAC has fined Xeltox Enterprises Limited a record C$176.9 million ($126 million) for serious money laundering and compliance failures, marking the country’s toughest-ever action against a cryptocurrency-related firm.
FINTRAC said Xeltox — which also operates under Cryptomus and previously as Certa Payments Limited — failed to file mandatory reports of suspicious transactions, including those connected to child sexual abuse material, ransomware, and sanctions evasion.
“The scope and nature of these violations demanded an unprecedented enforcement action,” FINTRAC said.
The regulator also found that Xeltox neglected to report virtual currency receipts over C$10,000, as required under anti-money laundering laws.
The record fine follows Ottawa’s announcement of a new federal anti-fraud and asset recovery agency, part of a broader effort to tighten oversight ahead of next month’s FATF international audit.
In September, FINTRAC fined KuCoin’s operator Peken Global Limited C$19.6 million — a record at the time — before KuCoin appealed, calling the penalty excessive.
Experts say the latest action against Xeltox shows Canada’s determination to clean up its crypto markets, sending a strong message that digital asset firms must meet the same compliance standards as traditional financial institutions.
