The Financial Transactions and Reports Analysis Centre (FinTRAC) of Canada has obligated all the crypto exchanges to register as of June 1, 2020. It will come into action with other changes in the anti-money -laundering regulations.
The firms have to keep an eye on their client records and report in case of suspicious actions. They must hire a compliance officer to look after their platform. These new policies intend to onboard Canadian banks along with cryptocurrency exchanges. Many financial institutions have been concerned over the risk of money laundering from crypto exchanges.
Lori Stein, a business partner of Osler says that now the crypto exchanges will under the supervisory of FinTRAC. The banks and other financial institutions can now focus on the business and providing services. However, some of the foreign exchanges may not agree to the new Canadian policies. This mandatory rules may force many crypto exchanges to leave the Canadian marketplace.
The CEO of blockchain firm Bitaccess expects that many foreign firms will restrict their access to Canada and settle outside its boundary. An AML officer states that this regulation can drive away many customers of cryptocurrency exchanges. The one who does not want to disclose their identity will limit their transaction within themselves.