In connection with the tightening of the anti-money laundering policy, the Canadian cryptocurrency exchanges will be required to register with the Financial Analysis and Reporting Center of Canada (FinTRAC).
In addition, the exchanges will have to review their user identification policies and report to the regulator all suspicious transactions. Also, the exchange will be required to keep a history of all transactions of its customers and hire a special person responsible for compliance with the requirements of regulators.
New rules come into effect on June 1 of the following year. As the partner of the law firm Osler, Hoskin & Harcourt Lori Stein told (Lori Stein), financial institutions in Canada are constantly afraid of money laundering and terrorist financing through cryptocurrency sites.
“I hope that after the exchanges are obliged to register with FinTRAC and comply with the requirements of regulators, banks and other financial organizations will become more open to providing services and doing business with cryptocurrency companies,” said Stein.
However, the lawyer noted that international sites may not want to meet the requirements of Canadian regulators and would prefer to stop working in the country. Currently, compliance with regulatory requirements in Canada is voluntary.
Recall that the Canadian regulators made a proposal to introduce rules for cryptocurrency exchanges back in the spring of this year. Later, the mayor of the city of Vancouver, Kennedy Stewart (Kennedy Stewart) proposed to prohibit cryptomatics in connection with the possibility of their use for money laundering.