Canada publishes official draft for cryptocurrencies regulations

The Canadian government seeks to regulate crimes such as money laundering and financing of terrorism

The Canadian authorities issued new regulations on cryptocurrency transactions through an official draft. In addition to strengthening the country’s financial sector, they seek to offer greater security through the control of illegal acts such as money laundering and the financing of terrorist acts.

As governments in different countries around the world have done, in Canada the authorities have issued controls regarding financial activity in digital currencies. After a thorough evaluation, the deficiencies that the local banking system could have, as well as damages that could cause crimes such as those mentioned or a massive theft of assets, were estimated.

The government Finance Department worked together with the Financial Action Task Force (FATF) to establish regulations on crypto exchanges and payment processors. A transaction requirement exceeding $ 10,000 Canadian dollars has been established. Also, the new Know Your Customer (KYC) threshold was set for $ 1,000 CAD transactions.

With respect to regulations, the Financial Transactions Analysis and Reporting Center (Fintrac) settles the obligation for companies to report any activity they consider suspicious on the platform.

The modernization of the Canadian banking sector was also included in this official draft published in the Canada Gazette, aimed at the use of new technologies to offer greater efficiency and security, without forgetting the adaptation of the legal framework to the new digital ecosystem.


Source: Cointelegraph

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