Cryptocurrency and ICO news 11.06.2018
Canada releases regulations on KYC/AML processes
The Canadian government has released an official draft of new regulations on crypto exchanges and payment processors.
According to the draft, the new regulations seek to address a “number of deficiencies” that the Financial Action Task Force (FATF) outlined after their evaluation in 2015-16, namely in strengthening Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/ATF).
The new regulations will treat crypto exchanges and payment processors as money service businesses (MSB), which requires them to report large transactions — those over $10,000 CAD ($7700 USD) — and a new Know Your Customer (KYC) threshold set at transactions of $1000 CAD ($770 USD).
Thus, it may cause a lot of troubles for exchanges, because the process of recording all the details about every transaction is difficult to implement.