Canada’s crypto firms to be legally recognised as MSBs

Companies must register with FINTRAC and follow its regulations. They need to keep records, verify customer identities, and report transactions exceeding $10,000 CAD ($7,403 USD) to the agency.

Francis Pouliot, founder of Bull Bitcoin, marked the shift on Twitter: "Today is my last day as an unregulated dealer in virtual currency. As of June 1st 2020, Bitcoin exchanges and payment processors are officially regulated as Money Services Businesses in Canada." Pouliot spent more than five years negotiating the specific details of what activities count under the new rules and how they work. The outcome still falls short of his vision. His main complaint: the requirement to report transactions over $10,000 CAD. "Bitcoin is money, it should be regulated like other money, no more no less," he said. He pointed out that banks don't have to report transfers at that level.

The amendment, passed in July 2019, filled gaps in Canada's anti-money laundering and terrorism financing laws. It defines Money Service Businesses to include any domestic or foreign entity dealing in virtual currency, whether through exchanges or value transfer services.

Bitcoin companies, including those running ATMs and handling cash, have begun implementing the compliance measures. They follow Know Your Customer protocols and other fraud prevention standards. Pouliot's assessment: "All things considered, I think this has been a huge success. It's not perfect but it could have been far worse."