Canadian authorities are stepping up anti-money laundering requirements for crypto companies.

The Financial Operations and Reporting Center of Canada (FINTRAС) announced plans to develop new requirements for cryptocurrency companies in the fight against money laundering and terrorist financing. The financial watchdog explains that the AML and CTF tightening for companies that deal with cryptocurrencies is “one of the top priorities in the near future”.

FINTRAC lists the risks associated with the cryptocurrency business, it is noted that new technologies have a revolutionary effect in the existing financial system.

In accordance with the proposed law, crypto companies will have to comply with new requirements related to financial statements and disclosures. Amendments are supposed to be introduced in the parliament later by the financial committee.

FINTRAC lists the risks associated with the cryptocurrency business, noting that such technologies will have a revolutionary effect on the existing financial system.

The report says that the updated legislative framework will include new reporting requirements for transactions in virtual currency, including those conducted through foreign channels. The financial supervisor adds that it plans to launch a series of consultations with the owners and founders of cryptocurrency companies to adjust the bill before submitting it for approval to the country's parliament.

According to the requirements approved in June 2019, crypto companies keep records of transactions in virtual currencies and identify the sender and recipient if the transfer amount exceeds 1,000 Canadian dollars. In addition, financial statements of such transactions should include information about the type of virtual currency and all participants involved in the transaction process.