Canada Tightens Crypto Regulations Alongside AML/CTF Overhaul
Canada Tightens Crypto Regulations Alongside AML/CTF Overhaul
Canada'south fiscal regulator has announced that it will soon implement new anti-coin laundering laws including stringent reporting requirements for crypto.
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The Fiscal Transactions and Reports Analysis Heart of Canada (FINTRAC) has announced it will soon implement new anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The laws including updated guidelines for virtual currencies.
In a departmental report published on March 10, FINTRAC emphasizes that the establishment of "an enhanced AML/[CTF] government" for businesses operating with cryptocurrencies is "a major priority in the near term."
FINTRAC expands regulatory mandate regarding offshore crypto companies
In the report, FINTRAC emphasizes the challenges arising from business and consumer adoption of new technologies such as cryptocurrency — adding that while nearly of the changes arising from new technologies are incremental in nature, "many are revolutionary" in impact.
The updated legislative framework volition include new reporting requirements for virtual currency transactions, extending FINTRAC'due south regulatory mandate to greater cover the operations of overseas-based companies operating with cryptocurrencies.
Canada's financial regulator plans to undertake "substantial national consultations with stakeholders and a rigorous implementation phase" in rolling out the new regulations. FINTRAC adds that information technology hopes to piece of work with industry representatives in considering adjustments to the new framework.
Canada to implement new reporting requirements for crypto companies
Passed during June 2022, the new regulations mandate that businesses operating with cryptocurrencies record and report a large amount of identifying information from the clients whose transactions they process.
For each successful or attempted transaction or remittance valued at more than 1,000 Canadian dollars, businesses must record the type and amount of each virtual currency involved, the sending and receiving addresses involved in the transactions, the source of the virtual currency, and the entities involved in the transfer.
All cryptocurrency transfers higher up x,000 CAD must exist reported to FINTRAC.
Canada responds to FATF directives
Much of Canada'southward AML/CTF overhaul appears to have been rooted in the 2022 assessment of the country'south anti-coin laundering apparatus by the G7 intergovernmental financial watchdog the Fiscal Activity Task Forcefulness on Money Laundering (FATF).
In the written report, FATF noted that Canada's cryptocurrency manufacture was among the state's near vulnerable sectors to AML/CTF violations.
The written report highlighted that virtual currencies did non fall under the country'due south regulatory apparatus at the fourth dimension despite Canada'southward government taking legislative measures to address the issue.
Source: https://cointelegraph.com/news/canada-tightens-crypto-regulations-alongside-aml-ctf-overhaul
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