Canada Updates Digital Asset Classification. What About Bitcoin ATMs?
Canadian authorities will now classify digital asset companies as financial services companies. It has been reported that since June 1, amendments to the anti-laundering law will be enacted in the country, which was adopted in June last year.
The day before the amendments entered into force, Francis POULIOT, CEO of the local BullBitcoin cryptocurrency exchange, tweeted that this was his last day as an unregulated digital asset dealer. Pouliot emphasized that he had been lobbying for the interests of cryptocurrency for almost seven years, so he considers the legalization of this class of assets a great success. According to Pouliot, changes in the legislation will mainly affect cryptocurrency companies that work with fiat money. He refers to such organizations, for example, operators of bitcoin-ATMs. He also added that most cryptocurrency companies already comply with KYC requirements, because they are required to do this under the terms of cooperation with banks and payment companies.
Major regulators target crypto ATMs
Experts anticipate that Bitcoin ATMs will become a subject of strict regulations, with Canada, Germany, and South Africa being the leading forces in tightening the regulations. In the latter trading Bitcoin in South Africa has become a very popular activity and the dangers associated with money laundering increased as well. Thus, the government decided to adopt strict measures to tackle the issue.
Germany, and in particular, The German Financial Market Authority tackled unlicensed Bitcoin ATMs in March. The introduction of anti-money laundering laws was the main cause of that, as Germany had big deficiencies in the previous crypto regulations.
In July last year, Spanish police also pointed out that a local gang laundered $10 million using BATMs. The United States of America also launched an investigation about the illegal use of cryptocurrencies.
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