Cryptocurrency regulations go into effect in Canada

On June 1, amendments to Canadian law entered into force that provide for the regulation of cryptocurrency companies as enterprises that provide money transfer services.

The amendments were first published by the Canadian government last July. From now on, cryptocurrency companies providing services to residents of Canada, including foreign ones, must comply with the requirements of the Center for Analysis of Financial Transactions and Reporting (FINTRAC) and register in it. As regulated activities with cryptocurrencies, lawmakers call the exchange and implementation of money transfers.

Founder of the Canadian crypto company Bull Bitcoin and activist of the local Bitcoin Embassy Francis Pulio said on May 31:

 “Today is my last day as an unregulated virtual currency dealer. The circle closed after 7 years from the moment I began my career in the space of bitcoin with lobbying for this very issue. Overall, I consider this a huge achievement. [New regulation] is not perfect, but it could be worse. Our position is unchanged: Bitcoin is money, it must be regulated like money, no more, no less. That is what we got. ”

According to Pulio, the discussion of regulated cryptocurrencies in Canada took 5 years. The Canadian parliament has proposed the inclusion of crypto companies in the law on combating money laundering and the financing of terrorism back in 2014.

In line with the new requirements, transactions with cryptocurrencies worth more than CAD 10,000 will require compliance with reporting and identification requirements. Pulio explained that this is the only point that does not allow him to call the amendments “decisive victory.”

He also noted that the new regulation applies primarily to crypto companies that work with traditional currencies, such as bitcoin terminal operators. Most industry participants already follow the strict principles of customer identification, as payment partners require them.