Financial firms that deal in virtual currencies, such as Bitcoin, will soon face new rules requiring them to comply with anti-money laundering rules, says the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
In this year’s federal budget, the government signaled its intention to introduce legislative changes, and new regulations, to strengthen Canada’s anti-money laundering and anti-terrorist financing regime; including measures to address the rise in popularity of virtual currencies.
FINTRAC reports that legislation has received Royal Assent that will introduce new requirements for money services businesses dealing in virtual currencies. “The regulations will aim to cover entities such as virtual currency exchanges, not individuals or businesses that use virtual currencies for buying and selling goods and services,” FINTRAC says; adding that the changes will come into force once regulations are published in the Canada Gazette.
Until those new regulations are drafted and in force, money services businesses that must register with FINTRAC include firms engaged in foreign exchange dealing, facilitating remittances, and issuing or redeeming money orders, traveller’s cheques and similar negotiable instruments, it notes.