On June 9, Canada Gazette published the news that the Canadian government had formed a whole project containing innovations that affect both spheres of payment systems and crypto-exchanges.

The draft says that the main purpose of the innovations is to focus on eliminating the “amount of shortcomings”, which the Financial Action Task Force (FATF) has summed up after their calculation during 2015 and 2016. Thus, the project will center on consolidating Anti-Terrorist Financing Regime and Canada’s Anti-Money Laundering (ATF/AML).

When the innovations come into effect, payment processors and crypto exchanges will go through all the handling stages as well as the money service businesses (MSB). This implies that they will be required to provide detailed reports on all major transactions, including those that exceed more than 10 000 CA dollars (7 700 US dollars) plus adding a special Know Your Customer (KYC) sign, established for remittances of 1 000 CAD (770 USD).

The project sets out an assessment of all costs and results, which shows that in the decade-perspective, the regulatory acts’ price will reach up to 61 million CA dollars (47 million US dollars).

Francis Pouliot, who holds the position of the joint constitutor of the blockchain consulting firm Catallaxy, based in Montreal, wrote his response to the project:

“The innovation “Large Virtual Currency Transaction Record” implies that companies need to request and store information about each transaction for more than 10 000 dollars, such as reports on transactions with huge amounts of money. The organization of such actions will take a lot of time and effort, which is not rational at all. I categorically don’t support this idea.”

The FATF is the organization of the intergovernmental level. Its main forces are focused on building a policy to fight against money laundering. This type of policy is not connected with any legal regulations and is not mandatory for execution. Nevertheless, referring to the project, Canada is confident that the realization of the above innovations will garner global support and the country will obtain a positive reflection on its international reputation.