Canadian companies that handle cryptocurrencies virtually, as of June 1, 2020, will be legally recognized as money service providers (MSB), this means that, from that date, exchanges and payment processors of Bitcoin, are officially regulated as money service companies (MSB) in Canadian territory.
From June 1, 2020, the amendments made to the Law on the Product of Crime, which is known as money laundering and terrorist financing in Canada, were enacted, which were approved a year ago (in June of the year 2019), in order to correct some deficiencies of the framework that existed at that time.
What will Canadian companies do?
From now on, Canadian companies engaged in cryptocurrency trading, must report all transactions that exceed the limit of 10,000 Canadian dollars (7403 US dollars), must register and comply with the Center for Transaction Analysis and Financial Reports of Canada (FINTRAC).
Francis Pouliot, the CEO of the Canadian Crypto Asset Exchange BullBitcoin, joined the Bitcoin Canada Foundation as its Director of Public Affairs in 2014. He dedicated himself to the fight for this legitimate recognition and authorization for over a decade from the crypto sector in Canada. Francis needed to be very involved in this process since April 2014, in which he collaborated in a particular way, with the Ministry of Finance and FINTRAC.
His stance has always been the same, stating that Bitcoin is money and should, therefore, be regulated like any money. Pouliot indicates that the new regulations will affect cash-based businesses such as Bitcoin ATM operators significantly and predominantly. Pouliot also adds that the majority of Bitcoin businesses already had KYC (Know Your Customer) measures in place, since it was required by banking partners and payment processing.
The recognition of MSB after years of negotiations
Long political discussions led to the creation of the legislative amendment in 2019, although the Canadian Parliament had plans to approve the regulations in 2014, however, it took 5 years for the legislative amendment to finally pass (during that time what specific activities were covered and the technicalities of regulating this process were negotiated and agreed).
What do you think about this topic? Does this recognition of cryptocurrency companies in Canada sound good to you?
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