Cryptocurrency exchanges in Canada are lawfully required to register with the monetary Transactions and Reports Analysis Centre of Canada (FinTRAC) as of June 1, 2020, per a notice revealed on July ten.

This demand can get result along with different amendments to Canada’s new anti-money-laundering (AML) laws next year.

Crypto exchanges also will reportedly be required to look at Know Your Customer policies and report any suspicious transactions to the Canadian watchdog; this also includes keeping records of their clients and hiring a compliance officer for his or her platform.

A report by the world and Mail notes that up thus far, compliance with these policies has been voluntary, however some exchanges have chosen to try and do so anyway.

The motivation for implementing the new policies is reportedly to urge Canadian banks onboard and in cooperation with cryptocurrency exchanges.

According to Lori Stein, a partner at business business firm Osler, Hoskin& Harcourt, Canadian monetary establishments have traditionally been concerned regarding the danger of money laundering and terrorist funding via crypto exchanges. Stein said:

“The hope is that currently that there's going to be a demand to register and abide by, and oversight by FinTRAC, that banks and different monetary entities are going to be additional open to providing services to and dealing with virtual-currency businesses.”

However, Stein points out that some international exchanges might not be willing to comply with the new Canadian rules. Another expert reportedly agree, saying that having obligatory regulation requirements might end in cryptocurrency exchanges opting to exit from the Canadian marketplace.

The chief executive officer of blockchainstartupBitaccess, Moe Adham, told the world and Mail, “I expect to check variety of corporations relocate outside of Canada, also as international corporations limiting access to Canadians.”

The new regulative policies may additionally drive crypto exchange customers away, some say. “This has the potential to drive cryptocurrency underground once more," said Canadian crypto exchange Coinsquare’s AML officer, Charlene Cieslik. Cieslik aforesaid that customers who don't wish to reveal their info to exchanges, would seemingly simply interact with one another directly.

As antecedently reported by Top Market Group, a bill was signed in 2014 that needed some foreign entities to register with FinTRAC for Bitcoin (BTC) payments.

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