Canadian money exchanges sanctioned over Iran crypto flows

Washington has taken its campaign against Iran's crypto channels north of the border. Eight Canadian money exchanges sanctioned by the Treasury's Office of Foreign Assets Control on November 6 converted Iranian rials and other currencies into digital assets, allowing transactions involving Iran to move abroad, the department said.

What happened

According to Treasury, many of the firms transacted with sanctioned Iranian crypto exchanges and with wallet addresses tied to the Islamic Revolutionary Guard Corps. Several also worked with Ryan Wedding, a former Olympic snowboarder and OFAC-designated drug trafficker who Treasury says used exchange houses around Vancouver and Toronto to launder billions of dollars in narcotics proceeds by turning bulk cash into digital assets. Wedding was taken into custody in January 2026. Treasury described Canada as home to hundreds of money services businesses that move funds in and out of Iran, both through cash-based transfer systems and by converting cash into crypto for cross-border payments.

The action was coordinated with FinCEN, Canada's financial intelligence unit FINTRAC and the Drug Enforcement Administration. It was taken under Executive Order 13902, which covers Iran's digital asset sector. Treasury said some of the businesses had changed names and addresses to avoid detection and were still operating despite media reports about their risks.

"Canada cannot be a safe haven for illicit financial facilitators," Treasury Secretary Scott Bessent said.

Why it matters

The designations extend Operation Economic Outcast, launched in August, which has already hit Iranian exchanges Nobitex, Wallex, Bitpin and Ramzinex in June and Aban Tether and Shelbit in August. With the Canadian money exchanges sanctioned, the pressure moves from Iranian platforms to the cash-to-crypto brokers that feed them, a layer that is harder to see on-chain. Iran also remains on the Financial Action Task Force blacklist, and the watchdog has reminded all jurisdictions to impose countermeasures restricting digital asset transactions with the country.

Any U.S. person or firm dealing with the entities now risks penalties, and exchanges that receive deposits from them face screening questions. The step came on the same day as the FinCEN MEXC order cut a major exchange off from U.S. banks under the same operation, and follows Treasury's earlier A7 network sanctions aimed at Russian evasion.

What's next

Expect compliance teams at exchanges and stablecoin issuers to add the new addresses and names to blocklists quickly. Canada's response through FINTRAC, and whether Ottawa takes its own enforcement steps, will be the next marker. Banks and payment firms with Canadian corridors will also need to show how they screen for the Canadian money exchanges sanctioned on Friday, including entities that have changed names. Treasury pointed firms to its sanctions FAQs on Iranian digital asset exchanges for guidance.

Cointelegraph noted that the U.S. Rewards for Justice program separately offered up to $20 million for information on Iran's nuclear program. Treasury's press release lists the designated businesses.