The Canadian Department of the Treasury has developed new rules for crypto dealers. These amendments will enter into force in 2020 (summer). These innovations are mandatory for acquaintances for those entrepreneurs who are planning to register a cryptocurrency exchange in Canada in the future. In this article you will find answers to all your questions regarding this topic.
What is a virtual currency?
- This is a virtual analogue of the value of property and goods. With the help of cryptocurrencies, you can pay for various services, purchase goods, and also make investments. If necessary, the owner of the cryptocurrency has the opportunity to cash out his digital capital (or exchange it for other virtual money).
- The term (virtual currency) also means a special key of a private type, which allows the owner to enter the cryptosystem.
Cryptocurrency exchange registrations in Canada
When registering such a form of entrepreneurial activity, you definitely need to pay attention to one fact. It consists in the fact that all cryptocurrency exchanges, according to the current Canadian legislation, belong to the financial services segment.
Therefore, companies whose activities are concentrated in this segment will be inspected by regulatory authorities especially carefully. Clients, company documents will be checked. The relevant regulatory authorities will constantly monitor the operation of the cryptocurrency exchange. Also, these services are required to provide annual reports on their work.
Canadian law imposes the following requirements on foreign cryptocurrency exchanges registered in this country:
- All company activity records must contain the maximum number of parts. This is necessary for identification.
- In the records of payments and transfers, reference numbers must be indicated.
- If the transaction was deemed by MSB as “suspicious,” the cryptocurrency exchange is required to submit reports on all financial transactions with minimal delay.
- Resources are required to record all data. Concerning the parties involved in the financial transfer to the beneficiaries of virtual currency from one account to another. This includes the date of the transaction, the amount of payment, confidential data of the payer, as well as the purpose of the transaction.
All information specified in this article is for informational purposes only and cannot be used as legal advice. If you need complete information on how to register a cryptocurrency exchange in Canada and how to conduct business without problems with local legislation, please contact our experts. We will provide you with full information support, as well as help you register a crypto exchange in Canada as quickly as possible. We will prepare all the documents necessary for registration and also take on the entire negotiation process with representatives of the regulatory authorities of Canada.
For more advice, contact us at the contacts listed on the site.