Unregistered Crypto Firms in Canada Fueling Million-Dollar Money Laundering

Core Insights - Unregistered crypto exchange companies in Canada are exploiting regulatory gaps to facilitate large cash-for-crypto transactions without identity verification, raising concerns about criminal activity in the digital finance sector [1][2][3] Industry Overview - Canada's issues with money laundering have extended into the crypto sector, where weak enforcement and oversight have created new avenues for illicit finance [2][6] - Blockchain technology allows for some transaction tracking, but crypto-to-cash services bypass critical controls, enabling anonymous fund movement for criminal organizations [2][6] Investigation Findings - An undercover investigation revealed that criminals can easily access unregistered crypto-to-cash services in Canada, with one instance showing a reporter collecting $1,900 in cash using minimal verification [3][4] - The transaction violated Canadian anti-money laundering regulations, which require recipient information for transfers exceeding $1,000 [4] - Offers were made to journalists for untraceable cash deliveries of up to $1 million in exchange for tether transfers, with no identity checks [4] Company Operations - The service 001k has received over $14.8 billion in cryptocurrency transfers since August 2022, yet operates illegally in Canada without FINTRAC registration [5] - Experts warn that services with no compliance checks facilitate unlimited criminal activity [6]