FINTRAC has updated KYC rules for cryptocurrency service providers and expanded the list of transactions requiring customer identification.
March 29, 2021 | AtoZ Markets – The Financial Transaction Analysis and Reporting Center of Canada (FINTRAC) has tightened the rules for verifying customers of digital asset companies. This information is stated on the regulator’s website.
FINTRAC updated KYC rules are effective from 1 June 2021
The changes affected local and foreign financial services firms, as well as cryptocurrency service providers. The guidelines are effective from 1 June 2021.
FINTRAC required companies to confirm the identity of clients in the following cases:
- Receiving cryptoassets worth $10,000 or more within 24 hours;
- Money transfer in the amount of $1,000;
- Foreign currency exchange transactions in the amount of $3,000 or more;
- Transfer in cryptoassets in the amount of $1,000;
- Exchange of cryptoassets worth $1,000 or more (including exchange for fiat currency and other cryptocurrencies);
- Transfer of cryptoassets to the recipient in an amount equivalent to $1,000 or more;
- Conducting or attempting to conduct suspicious transactions, regardless of the amount.
The department does not require an audit when it comes to government agencies or their subdivisions. The exception was also companies with $75 million in net assets listed on the Canadian Stock Exchange.
Earlier, Canada obliged local and foreign companies offering exchanges and transfers, including digital currencies, to register with FINTRAC.
Recall that in November 2020, the country’s tax service demanded that the Coinsquare cryptocurrency exchange transfer all user data since 2013 to check for compliance with tax obligations.
In March 2021, the department through the court gained access to the details of transactions, the amount of transfers, types of currency, and other information.
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