On June 1, 2020, Canada began regulating the activities of all cryptocurrency firms. They are now required to register with the financial transaction analysis and reporting Center of Canada (FINTRAC).
Cryptocurrency firms that provide services to residents of Canada for exchanging and transferring virtual currencies will be regulated as financial services companies. They must fully comply with all the requirements of the financial analysis and reporting Center of Canada (FINTRAC), as well as register.
Any individuals and legal entities in Canada are required to report transactions with crypto assets worth more than 10,000 canadian dollars. Such amendments were proposed by the government in July last year. The CEO and founder of the canadian cryptocurrency firm Bull Bitcoin, Francis Pouliot, confirmed that the amendments have already entered into force.
Pulio considers this a great achievement despite the fact that the country took about five years to agree on what types of activities with digital assets should be subject to regulation. The canadian Parliament proposed to include provisions on bitcoin in laws against money laundering and terrorist financing back in 2014.
He noted that the changes in the legislation will particularly affect operators of bitcoin ATMs, since most firms working with bitcoin in Canada already comply with strict requirements for the KYC procedure. This is required by payment processing partners to prevent fraudulent transactions.
Recall that last winter, the financial regulator of Canada (AMF) proposed equating mining to operations with securities, and the securities Administrators of Canada (CSA) were going to develop a regulatory framework for blockchain in order to reduce risks when implementing this technology in various areas.