In a move to legitimize and hold crypto accountable the Canadian Government has opted to consider crypto-centric businesses as Money Service Business. While America moves to declare them securities.
This actually good news in many ways and in some ways, for secretive people and nefarious ICO’s, it’s bad news. What this means is businesses that operate using Crypto will have to adhere to the same rules that other MSB’s are legally required to follow.
So what are some of those rules?
I have been doing some digging as this really matters to me and what has been keeping me so busy. Soon as I read this article last week managed to get a phone call with a lawyer in Toronto. I asked him about it and he said he follows crypto news and had not heard about it yet. More good news is that he believes my ambitious plan has legs and merit and is worth moving forward with. Can’t wait to get to Canada and meet with him and really get into the details of my business plan.
❌ https://news.coinsquare.com/government/regulation-for-crypto-businesses/ ❌ Read It!
MSB’s have many rules and regulations to follow but to not bore you with all the detail I will share with you the parts most important to me and most crypto investors investing in Canadian ICO or using Crypto services based in Canada. I don’t disagree, I am all for this as it is pretty much the same info I need from my clients.
Financial Transactions and Reports Analysis Centre of Canada
Also known as FinTrac and all their rules can be found here. http://www.fintrac-canafe.gc.ca/msb-esm/intro-eng.asp if you are looking for more information than I share. If you are and avid ICO investor or starting a blockchain based business in Canada you might want to take a peak.
What makes your business an MSB?
You will have to register and be compliant to all the rules and they will check, they will check hard. The reasons for this is to protect Canada’s financial system and considering Canada has one the world’s strongest banking sectors it obviously is working. Other big reasons are to prevent money laundering and curb terrorists activities. I feel these are reasonable but it sure does make things more expensive for businesses and does make getting investments a little more tricky during an ICO as many ICO investors don’t want to give up their identity.
How to be compliant.
Know exactly who you’re doing business with.
As a money services business, you must verify the identity of clients for certain activities and transactions according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR). Part of knowing your client includes following the methods to identify clients, as well as conducting certain additional activities as listed below:
http://www.fintrac-canafe.gc.ca/guidance-directives/client-clientele/client/msb-eng.asp
There are several methods in Canada to identify who people really are. There are other options and you check them out here. I use https://www.quadrigacx.com/ as my Canadian exchange and they verified my ID by connecting with government tax services software and answering some personal questions.
http://www.fintrac-canafe.gc.ca/guidance-directives/client-clientele/Guide11/11-eng.asp
I think this will help bring more money into the crypto markets. As it becomes more accountable and millions of people who are currently scared to invest in crypto will be able to rest assured someone is accountable. Even though many blockchain enthusiast are rather anti government control, me to in some ways, this will bring those who love laws and regulations into the crypto world and blockchain tech will finally go mainstream.
It’s finally happening. It needs to be embraced so that the Blockchain community becomes the Blockchain world.
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