The Department of Finance Canada has recently issued a Regulatory Impact Analysis Statement related to the AML/ATF regime proposed amendments to the country.
The statement suggests that Canadian crypto exchanges will now be operated as money service businesses (MSBs) and will be reporting to trades over a certain amount.
The
Canada Gazette has published the proposed amendments, here is the excerpt,“
Persons and entities that are ‘dealing in virtual currency’ would be financial entities or other entities deemed domestic or foreign MSBs, as the case may be. These ‘dealing in’ activities include virtual currency exchange services and value transfer services. As required of all MSBs, persons, and entities dealing in virtual currencies would need to implement a full compliance program and register with FINTRAC. In addition, all reporting entities that receive $10,000 or more in virtual currency (e.g. deposits, any form of payment) would have record-keeping and reporting obligations.”
The part about registering with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) should be less hassle for the exchanges.
The government concluded that the compliance with the proposed rules should cost just $270,112 over a ten-year period.
The statement states that the modifications will not be applied to provide extra clarity to traders and the exchanges who requested it. Instead, they may be to “close loopholes” and cope with deficiencies in compliance with the standards set by the Financial Action Task Force (FATF).
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