The Canadian government recently released an official draft of new regulations for the exchange of cryptocurrency and payment processors via the Canada Gazette .

These regulations address a number of deficiencies within the Financial Action Task Force ( FATF ) that are outlined following an evaluation during 2015-16 that strengthened Canada’s Anti-Terrorist Financing (ATF) and Anti-Money Laundering (AML) regimes .

The FATF stands as an intergovernmental organization that develops policies to prevent money laundering, which are not legally binding. Though, according to this draft, the Canadian government has agreed that implementing the FATF regulations will have a positive impact on the country’s international reputation.

The additional regulations aim to treat the exchange of cryptocurrency and payment processors as a money service business ( MSB ), which will require them to report transactions that supersede $10,00 CAD ($7,700 USD). A new Know Your Client ( KYC ) threshold has been set according to transactions beginning at $1,000 ($770 USD).

The cost-benefit analysis provided within the draft reveals regulations that will cost about $61 million CAD ($47 million USD) within the next 10 years.

These standards aim to improve integrity within the global ATF/AML framework, with the proposed amendments set to lead toward regulatory efficiencies with other countries’ anti-money laundering and anti-terrorist financing regimes, promoting an easier solution for businesses to operate internationally.

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