Canada Mandates Crypto Exchange Registration
- This is a part of a major AML/KYC push by the regulators.
Canada has made it mandatory for digital asset exchanges to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) starting from June 1, 2020.
According to the official notice published on June 10, this step has been taken as a part of a major push for anti-money laundering (AML) compliance in the industry. The mandatory registration will come into force along with other financial regulations planned for the same year.
In addition, crypto exchanges also need to follow strict Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) policies and have to report suspicious transactions to the authority. The agency also made it mandatory for the exchanges to keep proper records of the transactions and they need to appoint a compliance officer as well.
“A financial entity shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that it receives from a person or entity in a single transaction, unless the amount is received from another financial entity or a public body or from a person who is acting on behalf of a client that is a financial entity or public body,” the notice stated.
Self-regulation is not enough
According to a local report, a few Canadian exchanges are already following compliance rules; however, it is done voluntarily, which keeps many away from following the regulations.
“The feedback received [from the crypto industry] indicated that the proposed definition for virtual currency was too vague and that it should align more closely to FATF standards,” the notice added.
The regulators in the country are taking an interest in the crypto sector, especially after the mishap of QuadrigaCX, which resulted in the loss of millions of clients funds.
Meanwhile, Coinsquare, one of the largest Canadian crypto exchange, acquired a controlling stake in Missouri-based mobile payment provider Just Cash earlier this month to make an impact in the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term industry.
Canada has made it mandatory for digital asset exchanges to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) starting from June 1, 2020.
According to the official notice published on June 10, this step has been taken as a part of a major push for anti-money laundering (AML) compliance in the industry. The mandatory registration will come into force along with other financial regulations planned for the same year.
In addition, crypto exchanges also need to follow strict Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) policies and have to report suspicious transactions to the authority. The agency also made it mandatory for the exchanges to keep proper records of the transactions and they need to appoint a compliance officer as well.
“A financial entity shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that it receives from a person or entity in a single transaction, unless the amount is received from another financial entity or a public body or from a person who is acting on behalf of a client that is a financial entity or public body,” the notice stated.
Self-regulation is not enough
According to a local report, a few Canadian exchanges are already following compliance rules; however, it is done voluntarily, which keeps many away from following the regulations.
“The feedback received [from the crypto industry] indicated that the proposed definition for virtual currency was too vague and that it should align more closely to FATF standards,” the notice added.
The regulators in the country are taking an interest in the crypto sector, especially after the mishap of QuadrigaCX, which resulted in the loss of millions of clients funds.
Meanwhile, Coinsquare, one of the largest Canadian crypto exchange, acquired a controlling stake in Missouri-based mobile payment provider Just Cash earlier this month to make an impact in the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term industry.