As of today, Canadian companies operating virtual currencies will be legally recognized as money service businesses. A positive connotation can help to adapt the crypto.
New law
Crypto exchanges and cryptocurrency payment processors will be legally recognised as Money Service Business (MSB) from today. In order to remove legal loopholes, on June 1, amendments were made to the Canadian Crime Proceeds Act 2019, such as money laundering and terrorist financing.
From now on, hidden companies must report all transactions exceeding 10,000 Canadian dollars and register and cooperate with FINTRAC, the Financial Transaction and Reporting Analysis Center of Canada.
Company sentiments
The founder of the Canadian exchange crypto BullBitcoin, Francic Pouliot wrote on 31st May on Twitter that it was his last day as an unregulated distributor of virtual currency.
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.
— Frλ͎ncis ☣️ (bullbitcoin.com) (@francispouliot_) May 31, 2020
Full circle 7 years after I started my career in Bitcoin lobbying on this very issue.
Pouliot is reported to have spent more than 5 years fighting for legitimate recognition of Canada’s cryptographic sector, joining Bitcoin Foundation Canada as Director of Public Affairs in 2014.
According to the founder of the cryptography industry, Bitcoin is money that should be regulated just like other money. He also notes that the new regulations will have a big impact on cash companies because it gives the crypto company a lot of freedom of movement, which will certainly translate into greater market expansion.
Previous problems
Pouliot said that the Canadian parliament originally wanted to pass legislation in 2014, but protracted political negotiations led to a legislative change and led to a considerable delay.
Twitter user NODEfather wrote that he went to jail, selling BTC in 2014 for $9,260 when it was worth $9,998. The investor went to jail according to an unlicensed money transmission from the Bank Secrecy Act of 1970, which they somehow linked to Bitcoin.
Further development of the cryptos
Movements such as a simple change of the law, which changes the image of crypto companies, can introduce a lot of good in the industry. Currently, there is still a belief that cryptocurrencies are mysterious and uncertain, but such simple government moves can significantly change the situation and spread of crypto.
