US sanctions eight Canadian crypto firms over Iran-linked transfers
The U.S. Treasury added the money services businesses to its sanctions list after finding ties to Iranian exchanges, the IRGC, and drug money laundering.
Key takeaways
- 1The US Treasury sanctioned eight Canada-based money services businesses on 6 November.
- 2Firms including NIA Nations and Million Exchange processed transfers linked to Iran and the IRGC.
- 3Treasury said entities also laundered illicit proceeds for Canadian drug trafficker Ryan Wedding.
- 4Blockchain investigator ZachXBT called for sanctions on Iran-linked brokers five months earlier.
The US Department of the Treasury sanctioned eight Canada-based money services businesses on 6 November for facilitating digital asset transactions linked to Iran. The targeted entities include NIA Nations, Million Exchange, Amin Exchange, and Farah Exchange. Treasury officials said the businesses processed cross-border transfers that routed funds through sanctioned crypto channels.
According to the Treasury, several of the firms transacted directly with sanctioned Iranian cryptocurrency exchanges and wallet addresses tied to the IRGC. Treasury added that some of the sanctioned companies also assisted in laundering drug proceeds for Canadian narcotics trafficker Ryan Wedding. The firms converted physical cash into digital assets before transferring the funds internationally.
The enforcement action follows scrutiny of over-the-counter brokers suspected of operating outside standard anti-money laundering controls. Blockchain investigator ZachXBT publicly called for sanctions against Iran-linked over-the-counter brokers operating in Canada five months prior to the Treasury action. Regulatory agencies in the United States have targeted off-ramp and money transfer services that connect cash transactions to digital asset networks.
The sanctions block the specified Canadian firms from accessing the US financial system and prohibit American citizens and entities from conducting business with them. The action points to strict international oversight facing digital asset transfer services that handle cross-border payments. Enforcement agencies are expected to maintain focus on unverified money services businesses handling high-risk foreign transactions.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.