Canada Declares War on Cryptocurrency Fraud with Mandatory KYC/AML Regulations

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Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

Canada’s Fraud Crackdown

June 13, 2018 (Courtesy of ) – As stated in the draft published by Canada Gazette, the Financial Action Task Force (FATF) pointed out some inadequacies in the Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/ATF).

Similar to regulations in other countries where digital assets are partly tolerated, all cryptocurrency-related businesses, exchanges, and Fintech companies in Canada are now categorized under money service businesses (MSB).

As per the new regulation, MSBs are required to report all transactions exceeding 10,000 Canadian dollars, and a fresh KYC process must be conducted for transactions from 1000 CAD ($770).

The regulation requires MSBs’ to renew their licenses every two years and provide necessary documents to support the renewal.

More Stringent Regulations on the Cards?

Unlike the US, Canada has had a much more friendly stance towards cryptocurrencies and ICOs in recent times, making the nation a hotbed for startups in the digital currency space.

However, it appears all might change soon.

On January 31, 2018, BTCManager reported the Governor of Bank of Canada, Stephen Poloz had labeled bitcoin trading a gamble, calling for increased regulatory oversight in the nascent virtual currency industry.

Poloz declared that bitcoin and other cryptocurrencies are not assets.