Cryptocurrency regulation rules go into effect in Canada

by in Cryptocurrency News

Canada

In Canada, on June 1, amendments to the law on financial services that control the activities of crypto firms in the country entered into force.

“Financial services now include Canadian and foreign companies that conduct operations with virtual currencies. These operations include services for the exchange and transfer of virtual currencies, ”reads the comments in the amendments.

Now all cryptocurrency companies need to comply with the requirements of the law on financial services, including the implementation of the full compliance program and registration at the Center for Analysis of Financial Transactions and Reporting of Canada (FinTRAC).

Francis Pouliot, CEO and founder of the Canadian cryptocurrency company Bull Bitcoin, commented on the new rules: “Given all the circumstances, I consider this a huge achievement. Not perfect, but it could be much worse. Our position has never changed: Bitcoin is money, and it must be regulated like money, no more, no less. That is what we got.”

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According to Pouliot, it took five years to “agree on which specific activities are covered by the law, as well as on the technical features of regulation,” since the parliament proposed back in 2014 to include bitcoin companies in the law on combating money laundering and the financing of terrorism.

Under the new law, any individuals or legal entities in Canada that receive cryptocurrencies worth more than CAD 10,000 (approximately $ 7,350), “will now have reporting obligations.” Pouliot noted that this is the only thing that prevents him from calling the amendments "final victory."

He noted that the new rules will mainly affect companies that make cash transactions. Most Bitcoin companies in Canada already follow the Know Your Client (KYC) procedure, as required by their payment processing partners.