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Exchanges and payment processors must be linked

June 1, 2020

Canada is taking a new step towards regularizing activities related to the exchange, buying and selling of Bitcoin. And it’s this Monday, June 1st, Bitcoin exchanges and payment processors are officially regulated as money service providers in the North American country.

What does that mean? More security for users and the certainty that in the event of an error, answers can be obtained from the state. One element that could be classified as negative is that there would be a limit of $ 10,000 beyond which these operators would have to inform the tax authorities.

This legislation has been forged by both the Treasury and the Center for Transaction Analysis and Financial Reporting (FINTRAC) since 2014, according to the Canadian Exchange House CEO Bull Bitcoin, Francis Poulliot, who has accompanied the process since then.

Exchanges and payment processors must be linkedExchanges and payment processors must be linked

Remember that this legislation was published last year, so its entry into force is not exactly surprising to those in the industry.

“”The main thing that prevents me from calling this a crucial victory is the obligation to report all transactions above the $ 10,000 threshold, which includes physical cash, but not banking. I feel guilty for not fighting this discrimination enoughand“” wrote via his account on the social network Twitter this Sunday, May 31.

With the entry into force of this documentation, Bitcoin will be officially regulated as money on Canadian soil Companies that manage the custody of their users’ funds are regulated like all other operators involved in money exchange or payment processing.

Canada recently signed a multinational agreement with the U.S. and Mexico to create a blockchain technology research hub and team. The entry into force of this regulation and this project indicates the Canadian government’s interest in positioning the country in this important industry.