Canadian Regulatory Bodies Tightening Fintech RegulationsJun 12, 2018, 8:56AM
Canada's FATF and CSA are pushing a tightening of regulation and compliance to anti-laundering laws, detailing benefits of nearly $2 million.
Both the Canadian Financial Action Task Force (FATF) and the Canadian Securities Administrators (CSA) have released new legislation standardizing new cryptocurrency and fintech regulations. The FATF released its comprehensive review of the Anti-Money Laundering and Anti-Terrorist Financing Regime (AML/AMF) over the weekend, highlighting "a number of deficiencies that Canada needs to address." The CSA took action Monday, publishing "additional guidance on the applicability of securities laws to offerings of coins or tokens.
Canada's FATF has proposed a number of changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (which was amended last year as well). The proposed amendments have a defined set of objectives valued to benefits of $1,867,698. These objectives are detailed to
- strengthen Canada's ability to combat money laundering and terrorist financing activities
- operationalize changes to the Act and close gaps in Canada's AML/AMF Regime
- help improve reporting entities' compliance with regulatory requirements
- help improve the monitoring and enforcement efforts of the Financial Transactions and Reports Analysis Centre of Canada
- Improve Canada's compliance with international standards
- adopt minor technical changes
The CSA published new guidance standards on Monday, asserting a greater focus on initial coin offerings. Canadian investigations targeting ICO fraud earlier this year heightened national concern regarding the crypto environment. Tightening restrictions will help filter out criminal activity, but the country pursuing fintech involvement awaits a true executive force in the industry.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.