The Financial Action Task Force, FAFT, released recommendations for regulating cryptocurrencies for FATF member countries. Digital currencies are becoming increasingly popular across the globe and one of the leading countries in the field is Canada. Canada’s cryptocurrency industry was in the center of attention when the founder of QuadrigaCX died unexpectedly at the age of 30 and it turned out that he was the only person with access to hundreds of millions of dollars of the company’s clients. The case is still unresolved. Despite this scandal, the active support of the Canadian government for the digital economy affects cryptocurrencies in the best possible way and the industry is growing. Starting this month FATF recommendations became law in Canada and the Canadian cryptocurrency firms are now recognized as MSB, or Money Service Businesses. The non-Canadian businesses that have clients within Canada will also be obliged to register.
how crypto changed the digital economy for Canada
Canada actively supports the growth of other branches of the digital economy and encourages traditional industries to start using new technologies. In 2019 Honorable NavdeepBains became Minister of Innovation, Science, and Industry. In March of the same year, he announced Digital Charter. The document is a set of ten principles that Canada will adopt on its way to the advancement of the new digital economy. The digital Charter focuses on the values of equality, accessibility, and safety. The country aims at creating a secure digital economy and ensuring equal access to the digital world for its citizens. One of the examples of a branch of a digital economy is a cryptocurrency industry. iGaming platforms have been serving Canadian and international users for a while now. Online casinos became even more successful when the industry started accepting cryptocurrencies. From 2017 the best real money online casino for Canadian players made crypto payments possible and after a few months, the feature has been available for international users. As of now the users can use Bitcoin, Ethereum, PayPal, Ripple, and other digital currencies to gamble. They are no longer tied to the conventional currencies and money forms and the transactions that used to take days. Digitized gaming platforms actually offer a greater variety of options to its clients when it comes to games too. The traditional gambling opportunities such as poker tables, slot machines, sports betting, roulettes are available in digitized form. In addition, online services offer video game competitions. For this purpose, the iGaming industry adopted all popular genres of video games be it the endless runner games, shooter games, adventure games, racing games, sports games, you name it! The industry is growing very fast and naturally, the providers try to offer a bigger diversity on their platforms. You will even find games such as Mario and popular comic book and movie characters such as Batman, Superman, and Wonder Woman adapted for the iGaming platforms. Canada
Tightens Crypto Regulations Alongside AML/CTF Overhaul
The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) will soon announce the new anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. Cryptocurrencies are subject to the same laws and regulations as other Money Service Businesses starting this month, so the new regulations will affect digital currency firms as well. FINTRAC report, published on March 10 puts the spotlight on cryptocurrencies in that the regulation of digital currencies will be the priority of the near future. The report said that the more the new technologies develop the more challenges there are for the regulators. One of the big changes for the cryptocurrency firms will be the reporting requirements. The Canadian firms dealing with the digital currencies will have to report the transactions exceeding 10,000 Canadian dollars. The non-Canadian Money Service Businesses who have Canadian clients will also be obliged to follow the same rules. During the rigorous implementation phase, FINTRAC will consult the stakeholders and work with the industry representatives. In 2016 FATF, The Financial Action Task Force said in its report that the cryptocurrency industry is more vulnerable to AML and CTF violations than any other industry of the country.