Is Canada taking a tough stance on cryptocurrencies?

Canadian authorities have amended anti-money laundering and counter-terrorist financing laws to prevent criminals from exploiting loopholes in the regulations of cryptocurrency exchanges and firms.

According to a bill published in the Canada Gazette, the Financial Action Task Force (FATF) pointed out some shortcomings in the operation of anti-money laundering and anti-terrorism financing (AML/ATF) laws. As in several other countries, any cryptocurrency-related businesses - exchangers, fintech companies, etc. - are now classified as money services businesses.

Under the new rules, such businesses are required to report all transactions that exceed C$10,000. To make transfers over 1000 Canadian dollars, the client must undergo the KYC procedure. The regulation also requires cryptocurrency businesses to provide all documents necessary to renew their licenses every two years.

“Anti-money laundering and counter-terrorism financing laws will be amended to ensure that license renewal applications are processed more efficiently and quickly and reduce the amount of information that must be provided in doing so.” 

Strengthening regulations in the field of gambling?

Unlike the United States, Canada has a looser policy regarding cryptocurrencies and ICOs, which has made this country an incubator for cryptocurrency startups. However, it appears that this state of affairs may soon change.

On January 31, 2018, BTCManager reported that Stephen Poloz, Governor of the Bank of Canada, called Bitcoin “a form of gambling” and called for greater regulatory oversight of the cryptocurrency industry. According to his statement, Bitcoin and other cryptocurrencies cannot be considered assets. 

Poloz's verbatim quote is:  “I'm not entirely sure of the exact definition. These are not assets. Technically, they can be considered securities. Bitcoin has no intrinsic value, so it certainly cannot be considered an asset. Essentially, it is just speculation or a form of gambling.”.

Poloz is not the only one who sees only the negative sides of Bitcoin and other cryptocurrencies. However, the fact remains that the digital asset market is growing every day. It is only a matter of time before pessimists have a moment of insight.

According to btcmanager