Following a report from the Financial Action Task Force (FATF) regarding a number of deficiencies in Canada’s Anti-money Laundering (AML) and Anti-terrorism Financing Regime (ATF), new regulations have been suggested by the Canadian government.
The new regulations have been outlined in a legislative draft and place crypto exchanges as ‘money service businesses’ (MSB) and require any large transactions to be reported (anything over $10,000 CAD) and a Know Your Customer (KYC) threshold of $1000 CAD.
The legislative draft is the result of analysis and evaluations done during 2015 and 2016 and includes a cost-benefit analysis that predicts the new regulations will cost about $59 million CAD in losses over 10 years. However, the draft claims this loss is negligible when compared with the benefits of increased safety and security for the Canadian people.
The regulations have been met with some criticism, with Francis Pouliot of Montreal-based blockchain firm Catallaxy tweeting:
New requirement: “Large Virtual Currency Transaction Record” means businesses required to ask for and keep details of every transaction over $10,000, like large-cash transaction reports. That’s going to be extremely difficult and invasive to implement. I will object to this. pic.twitter.com/PdabH0uGj4
— Francis Pouliot ⚡ (@francispouliot_) June 8, 2018
The new policy regulations are not legally binding but Canada believes the country’s reputation could benefit from their implementation.
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