Anonymous, large-scale financial transfers are being executed without regulation through crypto services in Canada, as revealed by a CBC report. The document indicates that operations run from Toronto to Montreal, evading anti-money laundering (AML) laws and operating outside FINTRAC’s radar. An undercover investigation demonstrated a $1,900 cash withdrawal, verified only with a photo of a $5 bill and managed via Telegram with the unregistered exchange 001k.
The problem escalates to million-dollar levels, as journalists in Montreal received offers to deliver up to $1,000,000 in cash in exchange for Tether (USDT), without requesting any identification. These transactions violate Canadian regulations that require verification for amounts over $1,000. Experts warn that this creates an untraceable money trail, ideal for organized crime, as the anonymous cash-out point nullifies blockchain transparency.
So far, more than 20 operators have been identified, but FINTRAC’s oversight is limited and fails to track clandestine or foreign operators using encrypted apps. The analysis firm Crystal revealed that Hong Kong alone processed $2.5 billion this way in 2024. If Canada does not take significant regulatory measures, it risks becoming a silent hub for crypto money laundering.
Source: https://www.cbc.ca/news/investigates/crypto-to-cash-canada-9.6979928
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