Canada weighs tougher crypto measures
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.
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.
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.