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Canada relaxes rules for cryptocurrency exchanges despite ongoing QuadrigaCX saga

Canada cryptocurrency

Reassurance for Canadians: Cryptocurrency exchanges across the nation will now only have to report transfers of more than CA$10,000 ($7,663).

It comes after the Canadian government relaxed some of its new anti-money laundering regulations following feedback from payment service providers and cryptocurrency exchanges.

As a result of the changes, cryptocurrency platforms, both in and outside of Canada, now classify as money service businesses (MSBs).

“MSBs will now include domestic and foreign businesses that are “dealing in virtual currency […], Canada’s government said. “As required of all MSBs, persons and entities dealing in virtual currencies would need to fulfil all obligations, including implementing a full compliance program and registering with FINTRAC,” the government said.

Back in March, reports surfaced about Canada’s tax agency reportedly cracking down on cryptocurrency investors in the country. 

The agency was thought to have sent questionnaires probing investors about their bitcoin-related activity over the past 10 years.

Canada has also been rocked by the (still ongoing) QuadrigaCX saga in recent months. The cryptocurrency exchange that made headlines across the world after its founder and CEO Gerald Cotten passed away unexpectedly without giving anyone else access to the company’s cryptocurrency wallets.

“These amendments serve to mitigate the money laundering and terrorist activity financing vulnerabilities of virtual currency in a way that is consistent with the existing legal framework, while not unduly hindering innovation. For this reason, the amendments are targeted at persons or entities engaged in the business of dealing in virtual currencies, and not virtual currencies themselves,” the government added.

Published July 11, 2019 — 12:50 UTC