Canada tightens customer identification requirements for cryptocurrency companies – Bits Media

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Канада ужесточила требования по идентификации клиентов для криптовалютных компаний - Bits Media

Center for the analysis of financial transactions and reporting Canada (FINTRAC) Updated KYC rules for suppliers of cryptocurrency services and expanded the list of operations, requiring customer identification.

Last week, Fintrac has updated its leadership for local and foreign enterprises, providing cash register services, as well as exchange currency and money transfers without opening bank accounts. Now such companies should check the identity of its customers.

According to the Fintrac classification, These rules also apply to cryptocurrency suppliers. Companies should bring work in accordance with the new requirements for 1 july 2021 of the year. Suppliers of cryptocurrency services should confirm the identity of the client in the following situations:

  • Obtaining crypto assets worth $10 000 or more during 24 hours;

  • Transfer of money from the amount from $1 000;

  • Foreign currency exchange operations for the amount $3 000 and more;

  • Transfer in crypto acts in the amount of $1 000;

  • Exchange of crypto assets worth $1 000 or more (including exchange for fiat currency and other cryptocurrency);

  • Transfer of crypto assets to the recipient in the amount, equivalent $1 000 or more;

  • Conduct or attempt to conduct suspicious transactions, Regardless of the amount.

In these cases, suppliers of cryptocurrency services should identify the identity of the client during 30 days. KYC check can not be carried out, If we are talking about a government institution or its unit, as well as about companies, The minimum net assets of which on the latest audited balance make up $75 million, And their shares are traded on the Canadian Stock Exchange.

Transfer or receipt of crypto assets worth more than $10 000 Also exempted from verification KYC, If this is compensation for confirmation of the transaction, which is recorded in the blockchain, or if the exchange and transmission of the crypto acting were made to confirm another transaction or transmission of information.

Suppliers of cryptocurrency services are required to carry out constant monitoring of their customers as part of regulatory obligations under KYC/AML. Frequency, with which companies must update customer information, depends on the internal politicians and procedures, based on the risk level assigned to the client.

Regulators around the world are gradually tightening KYC/AML requirements for cryptocurrency companies. Recently it became known, that in South Korea cryptocurrency exchanges will be fine for non -compliance with aml rules.