As of July 1, Canadian financial firms using cryptocurrencies for exchange and payment processing will be officially recognized as Money Service Businesses or MSB in Canada. The Canadian Department of Finance published amendments to regulations under proceeds of Crime (Money Laundering) and Terrorist Financing Act. Canadian crypto firms must now report all transactions exceeding 10,000 Canadian dollars ($7,403), register and be subject to the compliance requirements of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The firms that are located outside of the country but have Canadian clients will be subjected to the same regulations. CEO of Canadian crypto-asset exchange BullBitcoin, Francis Pouliot has been collaborating with the Ministry of Finance and FINTRAC on the recognition of Bitcoin as money since he became the director of public affairs of Bitcoin Foundation Canada in 2014. He posted in tweeter that May 29th was his last day as an unregulated dealer in virtual currency. 

How crypto changed the digital economy for Canada

Canada is actively focusing on the digital economy. In 2019 the government of Canada published Canada’s Digital Charter a set of principles and rules that the Canadian government will follow on the way to the digitalization of the economy. The pioneer digital industries are the cryptocurrency and iGaming industries. Let’s take a look at how these two industries help each other grow, advance the world of technologies by utilizing them and contribute to the economy. iGaming has been around for many years now. Almost all the forms of traditional gambling, including poker tables, slot machines, sports betting, are available online. In addition, fairly newer options such as that of betting on video gaming tournaments and competitions are a growing branch of the iGaming industry. Canada casino online platforms became trendy around the world due to one fact – they allowed cryptocurrencies such as Bitcoin, Ethereum, Ripple, and others as a form of payment from their users. This regulation was not only for the citizens of Canada but for the international players too. There was no taxation on the cryptocurrencies so both the iGaming platforms and the users were happy. An additional advantage of using cryptocurrencies as a form of payment is the speed at which the transactions can be made. Unlike conventional money transfers, that can take days when they are done internationally, while cryptocurrency transactions take much less than an hour. The opportunity to play with cryptocurrencies was a huge inspiration for many players to go to iGaming platforms instead of the old-school casinos. Time-consuming conventional ways of money exchange were no longer a barrier. Considering the vast variety of choices of gaming and money forms, it does not come as a surprise that iGaming is gaining popularity day by day. The users from all around the world choose Canadian iGaming platforms because of their advanced approach to money forms. More users mean more income for the industry and more income means a bigger contribution to the economy.

Canadian Regulator Gives Warning After Busting Two Cryptocurrency Firms

The Manitoba Securities Commission (MSC), a provincial regulator in Canada, revealed two cryptocurrency firms promising a big gain in the country. Jbcapitals was operating in Switzerland and Halifax & Associates in Denmark. The companies promised an “85% success rate,” and no risk. Such high rates of success are a classic example of fraud. The regulator warned the public against such cryptocurrency schemes. MSC says that Manitoba residents have already filed multiple complaints against the two firms. It is better to report such questionable instances in order to avoid fraud and bring the responsible parties to court. An additional threat is the Bitcoin scammers impersonating police officers. The regulators warned the public against them too. Even though blockchain is more popular in Canada than anywhere else in the world the country still has a complicated relationship with cryptocurrencies. More industries accept cryptocurrencies than ever before, but digital currencies still are not as popular as their creators and long-term shareholders would wish them to be. Yet the regulators are uncovering a scheme after scheme to prevent financial fraud.