Canada releases new regulations on crypto-exchanges

Monday 11 June 2018 00:59 CET | News

The Canadian government has released an official draft of new regulations on crypto exchanges and payment processors.

According to the draft, the new regulations seek to address a “number of deficiencies” that the Financial Action Task Force (FATF) outlined after their evaluation in 2015-16, namely in strengthening Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/ATF).

The new regulations will treat crypto exchanges and payment processors as money service businesses (MSB), which requires them to report large transactions — those over USD 10,000 Canadian dollars (USD 7700) — and a new Know Your Customer (KYC) threshold set at transactions of USD 1000 CAD (USD 770).

The draft also contains a cost-benefit analysis, which reveals the regulations would cost about USD 61 CAD mln (USD 47 mln) over the next 10 years.

The FATF is an intergovernmental organization that develops policies to combat money laundering. These policies are not legally binding, but according to the draft, Canada believes that implementing these regulations will have a positive impact on the country’s international reputation.

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Keywords: Canada, cryptocurrencies, crypto-exchanges, AML, KYC
Countries: World