Canada has changed its anti-money laundering rules, and as a result, cryptocurrency exchanges operating in the country have to meet new regulatory laws.
The Canadian government made modifications to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in the Canada Gazette yesterday.
While most of the rules are about the perceived gaps within traditional finance, but they also changed the game for companies “dealing in virtual currency.” The government defined such companies as offering “virtual currency exchange services and value transfer services.”
According to the new rules, both Canadian and foreign cryptocurrency platforms must register as money servicing businesses (MSBs) and also “fulfill all obligations, including implementing a full compliance program and registering with FINTRAC [the Financial Transactions and Reports Analysis Centre of Canada].”
Also, if a company received CA$10,000 (US$7,667) or more in a single cryptocurrency transaction in the form of a deposit or payment, the…