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 transaction must be reported with the following details:
“(a) the date of the receipt;
(b) if the amount is received for deposit into an account, the name of each account holder;
(c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
(d) the type and amount of each virtual currency involved in the receipt;
(e) the exchange rates used and their source;
(f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;
(g) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
(h) every transaction identifier, including the sending and receiving addresses; and
(i) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery,
(i) the type of precious metals, precious stones or jewellery,
(ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received, and
(iii) the wholesale value of the precious metals, precious stones or jewellery.”
“The amendments help address and close the gaps that exist in Canada’s AML/ATF Regime, including regulating new business models and technologies and addressing new emerging risks. “- stated the government.
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