Canada began to regulate cryptocurrencies

Amendments regulating cryptocurrency circulation in Canada came into force on June 1.

Legal regulationapplies to cryptocurrency transactions, including digital currency exchange and transfer services, brokerage or intermediary operations carried out by online trading platforms. 

Since the beginning of the month, crypto dealers who offerservices to Canadian clients are required to comply with legal requirements for financial institutions, maintain financial records, monitor clients and transactions and report to the regulator. 

The regulation also provides for the registration of foreign cryptocurrency platforms in the Canadian Center for the Analysis of Financial Transactions and Reports (FINTRAC).

Amendments allow FINTRAC to chargeadministrative fines (AMP) from foreign companies that do not meet the requirements, and cancel their registration. Financial institutions are prohibited from opening an account or having correspondent banking relations with unregistered foreign crypto operators.

To regulate the cryptocurrency market Canadianlawmakers have been moving for the past five years. The Canadian government's general attitude toward cryptocurrencies has been a mixture of caution and acceptance. For example, the world's first crypto ATM appeared in Canada, and now it ranks second in the world with more than 729 Bitcoin ATMs. On the other hand, Canada's largest bank previously stated that it does not plan to work with digital currencies.

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