Crypto-Friendly Canada Set to Increase Regulatory Oversight in its Cryptocurrency Ecosystem to Eliminate Bad Actors.

So far, 2018 has been a year crypto regulation, with quite many nations working tirelessly round the clock to sanitize their blockchain-based digital currency industry by formulating guidelines to govern the nascent space.

In the latest development, according to local news source the Canadian Press  the government of Canada is looking to develop measures that would make it impossible for criminals to use prepaid credit cards and cryptocurrencies in aiding their money laundering activities in the country.

Per the report, the planned regulations would completely seal all loopholes in the nation’s anti-money laundering laws.

In recent times, bad actors have taken advantage of the anonymity that comes with some digital currencies such as Monero and others to carry out fraudulent activities like money laundering, purchasing hard drugs and banned products on the dark web. While the police and other security forces have succeeded in apprehending some of the perpetrators of these crimes, the truth remains that more stringent rules are required to deter bad actors from committing these heinous crimes.

“They [cryptocurrencies] allow for the rapid transfer of funds within or across borders, oftentimes without any intermediary, are generally characterized by non-face-to-face customer relationships, and can circumvent the physical ‘brick and mortar’ financial system entirely,” the report declared.

The proposed regulation would require all crypto-related businesses to register with Canada’s financial watchdog; Fintrac and all transactions from $10,000 upwards must be adequately scrutinized.

The guideline will also make it compulsory for issuers of prepaid credit cards to carry out know-your-customer checks and verify the identities of clients and promptly report any suspicious transactions.

The authorities firmly believe that the above measures will make it easier for them to monitor the crypto and Fintech space.

The regulation is not aimed at encouraging money transmitter businesses, exchanges and others to pay more attention to their KYC/AML operations, to curb the incidence of all forms of financial crimes.

“While providing benefits to consumers, the new business models can complicate monitoring as well as make it more difficult for authorities to follow the money trail. Such information [KYC] could assist in the investigation, apprehension, and prosecution of money launderers and terrorist financiers,” the federal summary noted.

The post Canada is Closing up Every way that Allows Criminals to Use Bitcoin For Fraud appeared first on ZyCrypto.

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