Canada’s Crypto Exchanges Must Now Register As MSBs, Report Transactions Over $10K

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Canada has updated its anti-money laundering rules, making changes that will affect cryptocurrency exchange operations in the country.

The Canadian government published the amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in the Canada Gazette on Wednesday.

While the changes to the financial rules – finalized late last month – cover a number of perceived gaps within traditional finance, they also notably set the bar higher for platforms “dealing in virtual currency.” The government explained that such activities include “virtual currency exchange services and value transfer services.”

The rules now class both Canadian and foreign crypto platforms as money servicing businesses (MSBs), which must “fulfill all obligations, including implementing a full compliance program and registering with FINTRAC [the Financial Transactions and Reports Analysis Centre of Canada].”

Further, any “reporting entity” across all sectors that receives CA$10,000 (US$7,667) or over in cryptocurrency – such as deposits received or in payment – must record details of the transaction, identify the sender and report the transaction.

Read the original article here: coindesk.com


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