Canada to create powerful financial crimes agency as US weakens its approach

Canada plans to create a Financial Crimes Agency and ban cryptocurrency ATMs — nearly 4,000 in the country — after a public inquiry found gaps in anti‑money‑laundering strategy. The FCA will investigate and prosecute financial crime (beyond Fintrac’s intelligence role), signaling tougher domestic enforcement for crypto-related activity. That regulatory tightening — alongside global estimates of ~$3tn in illicit funds moving yearly and Fintrac’s $45bn in disclosed suspicious transactions last year — increases compliance risk for crypto businesses and could weigh on Bitcoin demand in Canada by removing an accessible on‑ramp. The move contrasts with the US, where weakened enforcement and the pardon of Binance founder Changpeng Zhao after a $4.3bn penalty highlight regulatory divergence, adding jurisdictional uncertainty for market participants.