Canada to Strengthens Cryptocurrency Regulations

Moreover, FINTRAC through a departmental report highlighted that the initiation of a new amplified  AML/CTF system for the cryptocurrency industry is among its short-term list of priorities.

According to the report, FINTRAC highlights the challenges that come to light as a result of business and individual adoption of upcoming technologies such as virtual currencies. The agency adds that despite the fact that most changes that occur as a result of new technology are naturally gradual, many are revolutionary in their influence.

Indeed, the new regulations will include updated reporting requirements for cryptocurrency transactions. This new update will expand FINTRAC’s oversight to a greater extent. The agency will be able to cover abroad firms that deal with digital currencies.

In addition, the Canadian financial watchdog is arranging to take on considerable public opinion from cryptocurrency stakeholders in Canada. FINTRAC aims to work with the industry representatives to come up with a new fair and balanced cryptocurrency regulatory framework.

New reporting requirements for crypto firms

The new cryptocurrency regulatory framework passed back in June 2019; requires entities operating within the digital currencies sphere to record and report huge identifying information from their clients.

In the case of a cryptocurrency transaction worth over 1,000 Canadian dollars, an entity should outline the following:

In conclusion,  a huge portion of the cryptocurrency regulations revamp seems to be embedded in the G7’s 2016 assessment of Canada’s anti-money laundering gear. The report by FATF back in 2016 highlighted that Canada is one of the most exposed nations to AML/CTF infringements.

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