Canadian Crypto Exchanges Must Register As MSBs & Report Transactions

The anti-money laundering rules in Canada are apparently updated and there are changes which will affect a lot of exchange operations in the country. As the latest cryptocurrency news show, the Canadian crypto exchanges must be registered as MSBs and report all of the transactions over $10,000.

The amendments were published by the Canadian government to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in the Canada Gazette on Wednesday. Even though there are changes to the financial rules which finalized late last month, the new changes show that Canadian crypto exchanges are under a lot of scrutiny right now.

As we can see from the altcoin news, the exchanges cover a number of perceived gaps within the world of traditional finance. In addition to this, they also notably set the bar higher for platforms “dealing in virtual currency.” As such, the government explained that Canadian crypto exchanges involve in activities including “virtual currency exchange services and value transfer services” and must be properly regulated.

The new rules are featured on many best cryptocurrency news sites and class both Canadian and foreign crypto platforms as money servicing businesses (MSBs). Classified as such, they must “fulfill all obligations, including implementing a full compliance program and registering with FINTRAC [the Financial Transactions and Reports Analysis Centre of Canada].”

Furthermore, any “reporting entity” across all sectors that receives CAD $10,000 (US $7,667) or over in cryptocurrency – whether as deposits or payments – must record the details of the transaction, identify the sender as well as report the transaction.

The new rules by the government towards Canadian crypto exchanges also said:

“These amendments serve to mitigate the money laundering and terrorist activity financing vulnerabilities of virtual currency in a way that is consistent with the existing legal framework, while not unduly hindering innovation. For this reason, the amendments are targeted at persons or entities engaged in the business of dealing in virtual currencies, and not virtual currencies themselves.”

All of this comes months after the Canadian crypto exchange QuadrigaCX shocked the country and made global headlines after its founder and CEO Gerald Cotten died, apparently without passing any access to the company’s cryptocurrency wallets.