The Financial Transactions and Reporting Analysis Center of Canada (FINTRAC) will present updated regulations on digital currency regulation to combat money laundering.
Under the rules, which will come into force on June 1, 2020, stock exchanges will be required to review their policies on KYC procedure. FINTRAC proposes to tighten supervision over the activities of cryptographic companies and strengthen control over transactions with digital assets. Companies with turnover in excess of CAD 10,000 will be required to register as a cash operator.
For transactions in excess of CAD$1,000, such companies will be required to provide the name of the sender and recipient of the funds, their addresses, date of birth, contact phone number and the name of the cryptographic currency in which the transaction was made. For transactions involving larger amounts, the regulator would require an extended list of information.
FINTRAC believes that the rules issued by the Financial Action Task Force (FATF) on AML and CFT procedures are not strict enough, so a new "threshold" for firms dealing with digital assets should be set. However, in the view of the regulator, the updated regulations should act not only in the interests of Canada but also other jurisdictions.
Recall that in January of this year, the Canadian Securities Administrators (CSA) published a guide according to which Canadian exchanges will be subject to national securities laws if they work with crypto assets, which are securities or derivatives.
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