Canada weighs tougher crypto measures

June 11, 2018
Chris Wheal

Canada-based crypto exchanges are facing new regulatory requirements that will see them forced to report transactions worth over $7,700.

An official Canadian government draft of new regulations on crypto exchanges and payment processors has put special focus on anti-money laundering and anti-terrorism measures.

Requirements

As they stand, the new regulations would require the exchanges and payment processors to report transactions over $10,000 Canadian dollars ($7,700 USD).

There’s also a new Know Your Customer (KYC) threshold for transactions of over $1000 CAD ($770 USD), placing a greater responsibility on firms to vet customers and detect money laundering even at this lower level.

Along with the recommended measures, the draft includes a cost-benefit analysis that estimates the regulations would cost about $61m CAD ($47m USD) over the next 10 years.

Canada weighs tougher crypto measures

Canada weighs tougher crypto measures: pic from shutterstock

Opposition

The proposals will meet with fierce opposition from the industry.

“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,” tweeted Francis Pouliot, co-founder of Montreal-based blockchain consulting firm Catallaxy.

Nevertheless, with money laundering and terrorism being used to justify the measures, the government seems unlikely to change tack.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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