Canada issues Crypto Exchange regulations draft, which is aiming to address a “number of deficiencies” that the Financial Action Task Force (FATF) has set out after their evaluation in 2015-16.
11 June, AtoZ Markets – The government of Canada has issued an official draft of new regulations on cryptocurrency exchanges and payment processors, according to the local reports.
Canada Issues Crypto Exchange Regulations Draft
As per the draft, the new regulations are aiming to address a “number of deficiencies” that the Financial Action Task Force (FATF) has set out after their evaluation in 2015-16. The deficiencies have been spotted in the evaluation of solidifying of Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/ATF).
The Canadian draft of regulations will regard cryptocurrency exchanges and payment processors as money service businesses (MSB). This condition will require them to report large transactions. Authorities consider transactions over $10,000 Canadian dollars ($7700 USD) to fall under this classification.
Canadian crypto exchanges and payment processors will also need to abide by the new Know Your Customer (KYC) threshold that should set at transactions of $1000 CAD ($770 USD).
The new Canadian crypto exchange draft legislation also comprises a cost-benefit analysis. It outlines that the regulations would cost around $61 CAD mln ($47 mln USD) over the next 10 years.
Regulations are expected to positively impact Canadian international status
One of the Blockchain consulting firm’s leaders, Francis Pouliot, has tweeted the following in the response to the Canadian regulations draft:
“New requirement: “Large Virtual Currency Transaction Record” means businesses required to ask for and keep details of every transaction over $10,000, like large-cash transaction reports. That’s going to be extremely difficult and invasive to implement. I will object to this.”
Following on this, the FATF is an intergovernmental organization that works on developing policies to fight money laundering. The policies are not legally binding, yet, according to the draft, Canadian authorities think that implementing these regulations will positively impact the country’s international status.
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