The Canadian Government issues the official draft of their new Know-Your-Customer (KYC) and Anti-Money Laundering (AML)-focused regulations for cryptocurrency exchanges and payment processors.
These new regulations will be addressing the deficiencies found by the Financial Action Task Force (FATF) had uncovered during their evaluation of the industry for 2015 to 2016. The regulations will aim to strengthen the country’s AML system.
Under these regulations, cryptocurrency exchanges and payment processors will be treated as money service businesses (MSB). This means that they will have to report large transactions (transactions over C$10,000). Exchanges and payment processors will also have a KYC threshold to be set for transactions amounting to C$1,000 and above.
Naturally, some have opposed the implementation of these new regulations. Catallaxy Co-Founder Francis Pouliot expressed his distaste in a tweet:
New requirement: “Large Virtual Currency Transaction Record” means businesses required to ask for and keep details of every transaction over $10,000, like large-cash transaction reports. That’s going to be extremely difficult and invasive to implement. I will object to this. pic.twitter.com/PdabH0uGj4
— Francis Pouliot ⚡ (@francispouliot_) June 8, 2018
The Canadian Government, on the other hand, believes that these regulations will positively impact Canada’s international reputation.