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## FINTRAC Revokes 50 MSB Licenses, CIRO Approves Webull Canada — The Great Crypto Sorting Has Begun
Canada's crypto industry just experienced its most consequential regulatory week in history. FINTRAC has revoked **50 Money Services Business registrations** so far in 2026 — **47 of them tied to crypto firms** — in the most aggressive enforcement sweep ever seen on the Canadian financial landscape. In that same week, CIRO admitted Webull Canada Crypto as a full Dealer Member, granting it rare exemptive relief and dual authority over securities and crypto products. The message is unmistakable: rules are tightening for the unprepared, but the door is swinging wide open for the compliant.
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## What happened
FINTRAC's enforcement campaign accelerated sharply after Finance Minister François-Philippe Champagne issued a February 2026 directive ordering the agency to "mobilize resources" against illicit finance in the digital asset space. The result has been a systematic purge of non-compliant registrations.
Most of the **47 crypto-linked revocations** hit firms that registered with FINTRAC during the 2021 bull run but never updated their compliance programs to meet the enhanced **2022 obligations** — including the Travel Rule for transactions exceeding **1,000 Canadian dollars**. These companies fell silent, failed to file reports, or simply disappeared.
On the other side of the regulatory coin, CIRO approved **Webull Canada Crypto Limited** as a Dealer Member on June 19. The approval grants Webull authority to offer both traditional securities and cryptocurrency products under a single regulatory umbrella. CIRO also granted exemptive relief from standard insurance requirements, contingent on Webull maintaining crypto custody insurance through internal systems and external custodians such as **Coinbase Custody Trust**.
This decision follows CIRO's February 2026 **Digital Asset Custody Framework**, which introduced a four-tiered classification system for crypto custodians operating in Canada.
Meanwhile, the political landscape is shifting too. **Bill C-25**, the Strong and Free Elections Act, passed its second reading in the House of Commons on June 19. The bill proposes a ban on cryptocurrency political donations, closing what lawmakers describe as a transparency loophole in campaign finance.
And on the mergers and acquisitions front, **Robinhood's approximately 250 million Canadian dollar acquisition of WonderFi Technologies** received final CIRO approval on May 20, further consolidating the Canadian crypto brokerage space.
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## Why it matters
These developments tell a clear story about where Canadian crypto regulation is heading. The chaos of 2021 — when anyone could register as a Money Services Business and operate largely unsupervised —
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your own research before investing in cryptocurrency.*
#Bitcoin #Crypto #Canada #Regulation #FINTRAC
📢 Read the full article at: https://cryptodailycanada.blogspot.com
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