B.C.-Based Crypto Platform Challenges Historic $177 Million FINTRAC Fine

A British Columbia-incorporated cryptocurrency exchange, operating under the name Cryptomus, is pushing back against a staggering $177 million penalty handed down by Canada’s financial crimes regulator. The fine, issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), marks the largest in the agency’s history and stems from alleged breaches of anti-money laundering and terrorist financing laws.

In a recent Federal Court appeal, Xeltox Enterprises Ltd.—the entity behind Cryptomus—argues that FINTRAC’s decision was flawed due to legal errors. The company contends it had no awareness or oversight of the problematic transactions, which included over 7,500 dealings linked to Iran. Xeltox emphasizes that it merely licenses software from a Panama-based firm that controls the Cryptomus platform, and FINTRAC wrongly conflated the two as a single operation.

According to Xeltox, it’s properly registered as a money services business with FINTRAC, and any infractions were carried out by foreign licensees unrelated to its Canadian activities. The appeal highlights that the platform’s structure separates it from direct involvement in these issues.

On the other side, FINTRAC’s CEO Sarah Paquet described the violations as severe, involving connections to child sexual exploitation, fraud, ransomware, and efforts to bypass sanctions. The agency identified 1,068 unreported transactions in July 2024 alone, tied to darknet markets—anonymous online spaces for illegal trades—and wallets associated with criminal enterprises. Virtual currencies’ anonymity further exacerbates these risks, turning them into tools for illicit activities.

FINTRAC also cited Cryptomus for failing to report 7,557 Iran-originating transactions from July to December 2024, violating a Ministerial Directive. Additional lapses included inadequate compliance policies, poor risk assessments, unreported changes to business information, and neglecting to flag over 1,500 large virtual currency transactions (each $10,000 or more) in July 2024.

This case underscores growing concerns in Canada’s booming crypto sector, where weak controls can expose the system to money laundering, terrorist funding, and sanctions dodging. In the 2024-25 fiscal year, FINTRAC issued a record 23 violation notices, totaling over $25 million in fines—the highest annual count since gaining penalty powers in 2008. Overall, the agency has levied more than 150 penalties across various industries.

FINTRAC’s role as Canada’s financial intelligence unit is crucial: it oversees compliance for sectors like casinos, banks, money services, and real estate, requiring them to verify clients, maintain records, and report suspicious or large transactions. These reports fuel investigations into money laundering, terrorism, sanctions evasion, and national security threats.

A Word from OCryptoCanada.ca: Prioritize Safety with Regulated Exchanges

At OCryptoCanada.ca, we believe this incident highlights the critical need for crypto users to stick with regulated and verified platforms in Canada. Unregulated or poorly managed exchanges can expose you to unnecessary risks, including legal troubles and financial losses. To help you navigate safely, check out our in-depth guide on the Best Crypto Exchanges in Canada, where we break down top options that prioritize compliance, security, and user protection. By choosing established, FINTRAC-registered providers, you can trade with confidence and avoid the pitfalls seen in cases like this.

Stay informed on the latest crypto news, regulations, and tips—subscribe to our newsletter today for exclusive updates delivered straight to your inbox!

source https://ocryptocanada.ca/news/b-c-based-crypto-platform-challenges-historic-177-million-fintrac-fine/

Canaan and SynVista Energy Launch Sustainable Mining Initiative in Canada

Canaan Inc., a leading Bitcoin mining hardware manufacturer, has partnered with SynVista Energy to introduce a green-energy adaptive mining platform in Canada, according to a statement released on December 2th. The initiative aims to enhance the sustainability of Bitcoin mining by integrating renewable energy sources into the mining process.

The collaboration focuses on a gas-to-computing pilot project in Canada, utilizing what would otherwise be wasted natural gas to power mining operations. This approach is part of Canaan’s broader strategy to incorporate renewable energy solutions globally, as highlighted by the company’s recent engagements in various international projects.

The newly developed platform employs artificial intelligence to optimize the balance between energy supply and the demands of mining, ensuring that the use of clean energy does not compromise grid stability. Nangeng Zhang, CEO of Canaan, emphasized the significance of this development, stating, “We’re excited to launch this renewable-adaptive Bitcoin-mining ecosystem that integrates clean power, storage, and hash-rate in one intelligent platform.”

Beyond the environmental benefits, the initiative also explores the tokenization of energy output, carbon savings, and mining yields on the blockchain. This move towards tokenization is poised to enhance the transparency and liquidity of green assets, potentially setting a new standard in the industry.

This partnership underscores Canada’s growing role in the global push towards sustainable cryptocurrency mining. As the Canadian market continues to evolve, initiatives like Canaan and SynVista’s are critical in positioning the country as a leader in the integration of technology and environmental stewardship within the digital economy.

source https://ocryptocanada.ca/news/canaan-and-synvista-energy-launch-sustainable-mining-initiative-in-canada/

Canada Just Got Its First 100% Legal Canadian Dollar Stablecoin – QCAD

Big news for everyone in Canada who uses crypto: After years of working with regulators, a Canadian company called Stablecorp just launched QCAD – the very first Canadian dollar stablecoin that is fully approved and follows all the rules.

In simple words: QCAD = 1 Canadian dollar, always. Every QCAD in circulation is backed by real Canadian dollars sitting safely in regulated banks. Independent auditors check the reserves regularly and publish the proof so everyone can see it’s legit.

Why this is a huge deal for regular Canadians (even if you’re new to crypto)

1. Send money instantly and almost for free. Paying a friend across the country? Sending money to family overseas? Paying for something online? With QCAD, it can take seconds and cost just pennies – way cheaper and faster than bank wires or even Interac in many cases.
2. No more losing money on U.S. dollar conversions Right now most stablecoins are in US dollars (USDC, USDT). Every time the CAD-USD rate moves, Canadians lose a little. QCAD fixes that – you stay in real Canadian dollars 24/7.
3. Finally a “safe” way to try crypto. Because it’s fully regulated and backed 1-for-1, QCAD feels more like digital cash from your bank than a risky crypto bet. Perfect for beginners who want to dip their toes without the crazy price swings. Related: How to Buy Bitcoin & Other Cryptocurrency In Canada: 7 Common Ways in 2025
4. Better for businesses and freelancers Canadian companies can now accept payments or pay suppliers in crypto without worrying about breaking rules or exchange-rate headaches.
5. It opens the door to the bigger crypto world You can use QCAD on blockchains to earn interest (DeFi), buy NFTs, or trade other cryptocurrencies – but you start and end in safe Canadian dollars.

Quick facts about QCAD

• Built by Stablecorp, a Toronto-based company
• Backed by big names like Circle (the company behind USDC) and Coinbase
• Reserves are held in real Canadian banks and audited monthly
• Already starting to appear on Canadian exchanges and wallets

Stablecorp’s CEO Kesem Frank said it best: “This is the beginning of a new, faster, cheaper, and fairer financial system for every Canadian.

My Opinion

This is honestly one of the most important things to happen in Canadian crypto in years.

For beginners: QCAD is the easiest and safest way to start using crypto in 2025. You get all the speed and low fees of blockchain without the scary price rollercoasters.

For experienced users: This is our “home team” stablecoin. No more paying extra because everything is priced in USD. It also gives Canadian exchanges and apps a fully legal tool to build new products (think high-interest savings, instant payroll, cross-border payments, etc.).

Bottom line – Canada just moved from playing catch-up to leading the pack. If you live in Canada and you’re into crypto (or even just curious), QCAD is about to make your life a lot easier and cheaper.

source https://ocryptocanada.ca/news/canada-just-got-its-first-100-legal-canadian-dollar-stablecoin-qcad/

Bitcoin Heist in British Columbia: Family’s Ordeal and Legal Consequences

In a significant criminal case in British Columbia, a family known for their cryptocurrency investments was subjected to a violent bitcoin heist, resulting in the sentencing of one perpetrator. The incident, which occurred on April 27, 2024, in the quiet streets of Port Moody, B.C., involved a group of masked intruders who targeted the family in an overnight hostage situation that included severe physical and psychological abuse.

According to court documents, the attack began just after 6:30 p.m. when two men, disguised as Canada Post workers, approached the family’s residence. The assailants, identified by the aliases ‘One’, ‘Two’, ‘Three’, and ‘Four’, subjected the family to brutal treatment, including waterboarding and sexual assault, in an attempt to extract bitcoin from their accounts.

Tsz Wing Boaz Chan, a 35-year-old from Hong Kong, was sentenced to seven years in prison by Judge Robin McQuillan in Port Coquitlam Provincial Court on November 14, 2025, for his involvement in the crime. The court heard that Chan and his accomplices demanded 200 bitcoins, valued at approximately $26 million USD at the time of the incident, but were only able to steal around $2.2 million USD before the investor’s 18-year-old daughter escaped around 8 a.m. the next morning and notified the police.

The financial impact on the family was profound, with the investor stating that the stolen bitcoin represented decades of hard work intended to secure their future, pay off mortgages, maintain his business, support their aging parents, and leave a legacy for their children. The case highlights the emerging threat of ‘wrench attacks’, where cryptocurrency holders are targeted for their digital assets. As bitcoin’s value continues to rise, the risks associated with holding such assets also increase, posing significant challenges for investors.

The sentencing of Chan in Port Coquitlam represents a step towards justice, yet the emotional and psychological scars inflicted on the family may take years to heal. This incident underscores the growing need for enhanced security measures and awareness among cryptocurrency investors in Canada, as the country confronts these new forms of crime.

source https://ocryptocanada.ca/news/bitcoin-heist-in-british-columbia-familys-ordeal-and-legal-consequences/

Canada Eyes Stablecoin Regulations in Upcoming Federal Budget

The Canadian federal government is poised to introduce new regulations on stablecoins, potentially within the forthcoming federal budget to be presented by Canadian finance Minister on November 4, according to Bloomberg. Discussions between government officials, regulators, and industry leaders have been ongoing for several weeks, aiming to establish a clear legal framework for these digital assets.

Currently, Canada lacks a comprehensive legal structure for stablecoins, though regulators have suggested that certain tokens may be classified as securities or derivatives under existing laws. The ambiguity surrounding their status highlights the urgency for regulatory clarity.

In the Canadian market, stablecoins pegged to the Canadian dollar, such as QCAD developed by Toronto-based Stablecorp, remain less prevalent. QCAD is a fiat-collateralized token, backed one-to-one by the Canadian dollar. Meanwhile, U.S. dollar-pegged stablecoins like USDC continue to circulate in Canada, particularly following the cessation of Tether’s USDT operations in the country in 2023.

The Bank of Canada has been advocating for a robust regulatory framework to modernize the nation’s payment systems. Ron Morrow, Head of Payments, Supervision, and Oversight at the Bank of Canada, emphasized the importance of regulation, stating, ‘Governments are moving to regulate stablecoins and other cryptocurrencies so consumers can reap their benefits and be protected from credit and liquidity risks.’

In the United States, regulatory progress has been swifter. The GENIUS Act, signed into law on July 18, 2025, under President Donald Trump’s administration, established a federal framework for issuing fully collateralized, dollar-backed payment stablecoins with anti-money laundering measures and mandatory audits, set to take effect no later than January 18, 2027 (or earlier if final regulations are issued sooner). Since the passage of the GENIUS Act, the market for U.S. dollar-pegged stablecoins has grown to exceed $300 billion.

source https://ocryptocanada.ca/news/canada-eyes-stablecoin-regulations-in-upcoming-federal-budget/

British Columbia Implements Permanent Ban on Cryptocurrency Mining

Province prioritizes electricity for job-creating industries while managing unprecedented power demand

October 27, 2025 — The Government of British Columbia has officially moved to permanently ban new cryptocurrency mining operations from connecting to the provincial electricity grid, marking the first jurisdiction in Canada to make such a restriction permanent.

The ban, announced as part of sweeping energy legislation tabled October 20, 2025, formalizes a temporary moratorium that has been in place since December 2022. The measure aims to preserve British Columbia’s clean electricity supply for industries that generate jobs, public revenue, and long-term economic benefits.

Addressing Unprecedented Electricity Demand

The policy change comes as BC Hydro faces record demand from both traditional and emerging industrial sectors, with nearly 6,800 megawatts of proposed new load—more than six times the capacity of the recently completed Site C dam.

“We must act with urgency to leverage our clean-electricity advantage and grow and diversify our economy,” said Adrian Dix, Minister of Energy and Climate Solutions. “Our new allocation framework will prioritize vital growth in sectors like mining, natural gas and lowest-emission LNG, while ensuring our clean energy is directed to projects that deliver the greatest benefit to British Columbians.”

The provincial government states that cryptocurrency mining operations consume massive amounts of electricity while contributing minimal local economic returns. When BC Hydro initially paused new service requests from crypto miners in late 2022, approximately 21 projects representing over 1,400 megawatts of demand were awaiting approval—equivalent to the electricity needed to power 570,000 homes annually.

Part of Broader Energy Strategy

The permanent crypto mining ban is one component of a comprehensive energy allocation framework designed to support major industrial development across British Columbia. The legislation also includes:

• Limits on AI and data centers: Caps on electricity availability with a competitive allocation process launching in January 2026
• Priority for traditional sectors: Guaranteed access for mining, upstream natural gas, LNG, and manufacturing operations
• North Coast Transmission Line acceleration: Fast-tracked construction of a nation-building transmission project in partnership with First Nations

“We’re seeing unprecedented demand from traditional and emerging industries,” said Charlotte Mitha, President and CEO of BC Hydro. “The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable.”

First Permanent Ban in North America

While several U.S. states and Canadian provinces have implemented temporary moratoriums or stricter regulations on cryptocurrency mining to prevent grid strain, British Columbia is the first jurisdiction to make such a ban permanent. The move reflects growing concerns across North America about the energy intensity of crypto operations and their limited contribution to local economies.

Cryptocurrency mining, particularly Bitcoin, requires high-powered computers operating continuously to solve complex cryptographic problems for transaction verification. The process demands substantial electricity not only for computing operations but also for cooling systems to manage the significant heat generated by mining equipment.

Implementation Timeline

Detailed regulations related to the crypto mining ban and the broader electricity allocation framework will be implemented in November 2025. The competitive process for data center and AI electricity access is scheduled to launch in January 2026.

The legislation supporting these changes is currently before the British Columbia legislature and is expected to pass as part of the government’s economic diversification strategy.

source https://ocryptocanada.ca/news/british-columbia-implements-permanent-ban-on-cryptocurrency-mining/

KuCoin Challenges $19.55M FINTRAC Penalty in Canada Over Registration and Money Laundering Rules

One of the world’s largest crypto exchanges, KuCoin, is fighting back after Canada’s financial watchdog imposed one of the largest penalties in recent memory.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) says KuCoin, operated by Seychelles-based Peken Global Limited, failed to register as a foreign money-services business (MSB) and violated Canadian anti-money-laundering (AML) requirements. The result: a penalty of $19,552,000 CAD (approximately $14.1 million USD).

Why FINTRAC Imposed the Penalty

According to FINTRAC, KuCoin failed to file reports for 2,952 large virtual currency transactions (each ≥C$10,000) between June 2021 and May 2024. The regulator also identified 33 transactions where KuCoin failed to report reasonable grounds for suspected money laundering or terrorist financing, linked to activities like darknet markets and ransomware. FINTRAC classified these violations as “serious” to “very serious.”

This single case accounts for approximately 78% of fines imposed by FINTRAC in its 2024–25 fiscal year (April 1, 2024–March 31, 2025), totaling over $25 million CAD across 23 notices.

KuCoin’s Side of the Story

KuCoin has filed an appeal with the Federal Court of Canada, arguing the decision is both procedurally flawed and substantively unfair, particularly disputing its classification as a foreign MSB and the penalty’s “excessive and punitive” nature.

A Pattern of Regulatory Heat

This isn’t KuCoin’s first issue in Canada. In 2023, the Ontario Securities Commission (OSC) fined the exchange approximately C$2 million and imposed a permanent market ban for unregistered securities trading. Globally, KuCoin faced a major setback in January 2025, settling with the U.S. Department of Justice for over $297 million after pleading guilty to operating without proper licenses.

What This Means for Canadian Crypto Users

For Canadians using KuCoin or other offshore exchanges, this case signals intensifying regulatory scrutiny. FINTRAC and provincial regulators like the OSC are prioritizing compliance and AML protections ahead of Canada’s Financial Action Task Force (FATF) evaluation in November 2025. The appeal’s outcome could shape future rules for offshore crypto platforms in Canada.

Official KuCoin Statement

Original source:

“KuCoin Appeals FINTRAC Decision – Standing by Our Commitment to Compliance

KuCoin has received a decision from the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) upholding a Notice of Violation issued on March 31, 2025.

While KuCoin respects the decision-making process and remains committed to regulatory compliance and transparency, it disagrees with both the finding that KuCoin is a Foreign Money Services Business and the penalty imposed, which KuCoin maintains is excessive and punitive in nature.

KuCoin has exercised its statutory right and formally submitted an appeal before the Federal Court of Canada on both substantive and procedural grounds.”

source https://ocryptocanada.ca/news/kucoin-challenges-19-55m-fintrac-penalty-in-canada-over-registration-and-money-laundering-rules/