Canada Tightens Regulations on Crypto Firms
The Canadian government recently introduced regulations that will impose increased disclosure obligations on crypto firms.
- The Crypto-Asset Reporting Framework (CARF) will be implemented to ensure compliance with new regulations.
- Canada’s budget allocates funds to the Canada Revenue Agency to cover the costs of implementing the new framework.
- Annual reporting obligations will apply to various cryptoasset service providers in Canada.
Canada Implements Measures To Track Crypto Transactions 📊
Canada Revenue Agency (CRA) will require the reporting of crypto transactions involving exchanges between cryptoassets and fiat currencies, as well as transfers of cryptoassets.
- The reporting requirements will exclude central bank digital currencies (CBDCs) and other electronic money products.
- Crypto service providers must report client details, including names, addresses, and taxpayer identification numbers.
- These measures are expected to be enforced in the 2026 calendar year, with the exchange of reported information to begin in 2027.
Public Funds Face Crypto Investment Limits ⚖️
Canada’s securities watchdog has set limits on crypto investments for public funds, restricting direct purchase, sale, and holding of crypto assets to certain types of investment funds.
- Publicly offered crypto asset funds will be prohibited from investing in NFTs to protect retail investors.
Hot Take on Canada’s Crypto Regulations
In conclusion, Canada’s new regulations on crypto firms aim to enhance transparency and accountability within the industry.
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