Tanya Abrosimova
Independent Analyst
- Canadian authorities bring their AML regulation in compliance with FATF requirements.
- Cryptocurrency exchanges will have to report on transactions that exceed CAD10,000.
The Canadian authorities obliged local and foreign cryptocurrency exchanges to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC). New rules were published on the official website of the government as amendments to Anti-Money Laundering Law.
Thus, in accordance with the updated rules and definitions, cryptocurrency exchanges are classified as financial services and payment service providers. It means that they have to comply with all KYC/AML requirements applicable to these companies.
Also, the trading platforms for virtual currencies will have to identify senders and report the details on all transactions that exceed CAD 10,000 ($7646).
"While all reporting entities will need to report the receipt of Can$10,000 of virtual currency, similar to large cash transactions, the amendments were modified to repeal the mandatory reporting obligations for virtual currency transfers that total Can$10,000 equivalent or more while Finance Canada officials are awaiting the completion of the changes to the FATF guidance," the document says.
The new rules will take effect on June 1, 2020.
It is worth noting that Canadian authorities adopted a tighter regulatory approach towards the industry after QuadrigaCX debacle.
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