Canada Gazette reported that an official draft of new regulations on crypto exchanges and payment processor, which seeks to resolve “a number of deficiencies” outlined by the financial action task force (FATF). The new regulation states that crypto exchanges and payment processor would be treated as money service business (MSB) where large transactions above $10,000 Canadian would be reported. The new regulations also suggests that $1000 Canadian be set as the new know your customer threshold.
The draft also contains a cost-benefit analysis, which reveals the regulations would cost about $61 CAD mln ($47 mln USD) over the next 10 years.
The co-founder of Montreal-based blockchain consulting firm Catallary, by name Francis Pouliot replied to this tweet on Twitter saying
“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.”
Canada believes that implementing these regulations will have a positive impact on the country’s international reputation even though the policies are not legally binding.