Crypto Regulation
and Illicit Finance
in Canada

As cryptocurrency adoption accelerates across Canada, so do the complexities and risks associated with its use in illicit finance. Crypto Regulation and Illicit Finance in Canada provides a comprehensive, data-driven view into the current crypto landscape in the Great White North — helping law enforcement, regulators, financial institutions, and crypto businesses navigate evolving threats and regulatory expectations.

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Key findings include:

• ‍Canada's rising exposure to illicit crypto activity: Canada ranks #9 on TRM Labs’ “2024 Illicit Crypto Exposure Index,” driven by transactions with sanctioned entities like Garantex
• ‍Emerging threats: Scams, synthetic drug trafficking funded by cryptocurrency, and sanctions evasion are increasingly impacting Canadian-linked crypto activity
• ‍Regulatory momentum: Canadian authorities have strengthened crypto regulation with pre-registration undertakings (PRUs), stablecoin guidance, and new capital and liquidity frameworks for banks
• ‍Enforcement in action: Case studies highlight cross-border collaboration — including Canada’s role in takedowns of illicit exchanges and DeFi-related investigations