Why did Canada tighten its crypto regulations

Cryptocurrencies serve as an alternative to the more traditional method of exchange – cash, and new technologies of this magnitude are bound to create challenges when it comes to adapting them by businesses and consumers.

Despite the difficulties that come with the adoption of these new currencies, neither businesses or individuals have shied away from embracing them as they certainly have much to offer to us.

Online casinos especially have grown fond of them and were one of the first companies to start accepting cryptocurrencies, with the number of supported cryptos growing over time and could be even said that they’ve fallen in love with it. The simplicity of transfers, alongside the stunning speed of deposits and withdrawals provides their users with unmatched smoothness in their gaming experience, while also allowing the users to quickly turn cryptocurrencies into Canadian real money online casinos, were one of the first companies to see the potential in cryptocurrencies and start implementing them into their systems.

Due to the decentralized nature of cryptocurrencies, there aren’t any middlemen. Simplifying transactions, as a result, making them easier and faster at less or no fees at all. All while keeping more confidentiality, as we account holders are the sole owners of the funds and don’t have to rely on banks or other financial intermediaries to deposit, withdraw or transfer our funds.

Additionally, cryptocurrencies have the potential to reach more people than banks, as more people in the world have access to the internet compared to banks or other currency exchange systems. However, while cryptos are certainly able to provide great benefits, they also come with important downsides that should not be overlooked.

The downsides of crypto

First and foremost, banks and other financial intermediaries do not just offer the services of storing and transferring your funds, but also provide security and insurance. Cryptocurrencies are very complex mechanisms that are based around their blockchains and if an individual is inexperienced, or simply unaware, they become vulnerable to scams.

Sadly, there are already a plethora of examples of scams in the crypto industries, some small, while others large, and sadly, cryptocurrencies also sometimes allow these scammers to go unpunished.

Furthermore, cryptocurrencies are highly volatile and lack inherent value, and can be rather unreliable a lot of the time. This can, in turn, lead to the unattractiveness of the entire cryptocurrency market for potential new investors.

With the help of regulations, the trading values of cryptocurrencies can be suppressed in the short term, eventually stabilizing the market in the long run and make it a safer environment for investors.

How Canada has started regulating crypto

With this in mind, Canada is already taking the necessary steps to appropriately regulate cryptocurrencies. The first one in line is the Financial Transactions and Reports Analysis Center of Canada (FINTRAC), which announced that it would be implementing new anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.

FINTRAC recognizes the difficulty of adopting new technologies such as cryptocurrencies but still aims to greatly cover the operations of overseas-based companies operating with cryptocurrencies. Additionally, the Canadian regulator plans to undergo comprehensive national consultations with stakeholders and a strict implementation phase.

Moreover, Canada will also be implementing new reporting requirements for companies involved in the crypto market. Specifically, the requirements involve companies having to record the type and amount of each virtual currency involved, as well as the addresses of the sender and receiver that were involved in the said transactions. However, these will only be required for transactions valued at or above 1,000 CAD. While all transfers valued above 10,000 CAD will need to be reported to FINTRAC.