Canada recognizes crypto exchanges as Money Service Businesses

Canada recognizes crypto exchanges as Money Service Businesses

Canada has offically considered cryptocurrency exchanges and payment processors as recognized Money Service Businesses. One June 1st Canada enacted amendements to Canada's Proceeds of Crime and terrorist Financing Act to address holes in the existing framework. 

As such Candian crypto firms must now report all transactions exceeding 10,000 Canadian dollars ($7,403), and register and comply with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). CEO of Canadian crypto asset Exchange BullBitcoin was happy with the announcements and tweeted,  “Today is my last day as an unregulated dealer in virtual currency. As of June 1, 2020, Bitcoin exchanges and payment processors are officially regulated as Money Services Businesses in Canada.”

Pouliot had spent over half a decade fighting for legitimate recognition for Canada’s crypto sector, having joined the Bitcoin Foundation Canada as its director of public affairs in 2014. 

“I've been closely involved with the process, starting in 2014, collaborating particularly with the Ministry of Finance and FINTRAC. Our stance never changed: Bitcoin is money, it should be regulated like other money, no more no less,” he added.

Pouliot notes that the new regulations will predominantly affect cash-based businesses such as Bitcoin ATM operators, adding that “most Bitcoin businesses already had KYC measures in place [...] because they were required to do so by their banking or payment processing partners.”

 

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