One year ago FATF, The Financial Action Task Force, published the recommendations concerning the blockchain industry. The industry is flourishing in many countries including Canada, even though the still unsolved QuadrigaCX scandal was a big blow for the country. Canada Energy Regulator reported in February of 2020 that cryptocurrency mining is booming in Canada. As of June 2020 the FATF recommendations became law in Canada and the Canadian firms using cryptocurrencies will officially be recognized as Money Service Businesses. The firms will have to register as MSB. Even the firms that are located outside Canada but have Canadian clients will have to register in Canada to keep the clients. One of the many rules that the cryptocurrency firms will have to adhere to is the “Travel Rule”. This means that the inter-exchange transactions must include personal information about the sender. Other countries that are members of FATF are also expected to adopt the regulations.
How crypto changed the digital economy for Canada
Cryptocurrency is not the only digital industry for Canada. The country is actively supporting emerging digital industries, as well as digitalization of the conventional industries. In 2019 the government of Canada published the Digital Charter. The charter has ten principles that the country will aim to follow while trying to digitize its economy. One of the great examples of digitalization of an industry is the gaming of Canada. It has been many years since Canadian iGaming platforms serve Canadians as well as international users. The iGaming providers offer their customers a variety of options when it comes to gaming types. All the traditional gambling forms such as slot machines and sports betting are available on the world wide web. Along with these, the providers offer online poker tournaments. One of the growing branches of the industry is video game betting and competitions. More and more people of different generations are playing video games and this branch of iGaming is increasingly popular. Another reason the iGaming industry of Canada grew so fast was the cryptocurrency. The iGaming providers started accepting cryptocurrencies several years ago. First there was a trend of online casino Canada real money. Real money options were acceptable for the majority but as soon as Bitcoin dominated the world’s interest, Canadian online casinos started accepting cryptocurrencies and along with the majority, the minority felt in safe hands. This meant that the time-consuming old ways of money transactions that can take days were changed to the crypto transactions that take less than an hour. The cryptocurrencies are easier to access for users of iGaming platforms not just in Canada but across the globe. So, it became faster and easier for both the providers and the users. Canadian iGaming platforms accept multiple cryptocurrencies. Bitcoin, Ripple, Ethereum, and PayPal are just a few of them.
Canada Tightens Crypto Regulations Alongside AML/CTF Overhaul
The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) will soon announce the new anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. This time the regulations will affect the cryptocurrencies too. FINTRAC published the report on March 10th stating that the regulation of digital currencies will be the priority of the near future. The report also says that as the population adopts the new technologies there are more challenges that could even have a revolutionary impact, to deal with. The regulations will include new reporting requirements for the cryptocurrency industry. The Canadian firms dealing with the digital currencies will have to report the transactions exceeding 10,000 Canadian dollars. The laws will extend to the international firms that are operating in Canada and /or have Canadian customers. During the rigorous implementation phase, FINTRAC will consult the stakeholders and work with the industry representatives. In 2016 FATF, The Financial Action Task Force said in its report that the cryptocurrency industry is more vulnerable to AML and CTF violations than any other industry of the country.