In a major breakthrough, the Canadian government has finally implemented the Amendments made in its regulation in June 2019, making Cryptocurrency companies and payment processors legally recognized Money Service Businesses (MSB) in the country. This development has come a year after amendments were made to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act by the Canadian government.
After June 1, crypto companies, both domestic and foreign, that provide service to Canadian customers will be required to register and comply with regulations of Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the country’s financial intelligence unit. As per the legislation, crypto transactions exceeding 10,000 Canadian dollars ($7,403) must be reported and identified as per the regulations. All Cryptocurrency exchanges and money transfers will come under the scrutiny of the new regulation under the legislation.
The June 2019 Amendment stated, “As required of all MSBs, persons, and entities dealing in virtual currencies would need to fulfill all obligations, including implementing a full compliance program and registering with FINTRAC.”
Taking to Twitter on May 31, Francis Pouliot, the CEO of Canadian crypto company BullBitcoin said: “Today is my last day as an unregulated dealer in virtual currency. As of June 1, 2020, Bitcoin exchanges and payment processors are officially regulated as Money Services Businesses in Canada. Our stance never changed: Bitcoin is money, it should be regulated like other money, no more no less.”
Pouliot also asserted that these regulations will impact Bitcoin businesses which are involved with cash such as Bitcoin and ATMs.
Additionally, crypto trading platforms are also required to implement know your customer policies and report details of any suspicious transactions to authorities. These measures have been taken by the Canadian government to encourage cooperation between banks and crypto companies in the country.
In 2014, the Canadian parliament proposed the incorporation of crypto companies into the Anti-Money Laundering and Terrorism Financing Act.