Canada Is Now Monitoring Crowdfunding Sites And Cryptocurrency Under The Terrorist Financing Act.
The federal government of Canada has used its Emergency Act for the first time, focusing on crowdfunding platforms and crypto payment providers associated to them.
In reaction to ongoing blockades over COVID-19 restrictions, Canada‘s Prime Minister Justin Trudeau has triggered the country’s Emergency Act for the first time.
The legislation requires crowdfunding platforms and payment service providers associated with them, including cryptocurrency, to file with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). At this point, it is unknown if the emergency legislation will have a long-term impact on crypto payment services.
Finance Minister Chrystia Freeland announced Monday that the federal government is expanding anti-money laundering and terror-financing legislation to include crowdfunding platforms and payment providers.
“These changes cover all forms of transactions including digital assets such as cryptocurrencies. The illegal blockades have highlighted the fact that crowdfunding platforms and some of the payment service providers they use are not fully captured under the Proceeds of Crime and Terrorist Financing Act.”
As of Monday, all crowdfunding platforms and associated payment providers must disclose significant and unusual transactions to the country’s financial regulator in the same manner that banks are required to, according to Freeland.
The act, which was enacted by the Canadian parliament in 1988, gives the federal government temporary new powers to deal with public welfare, public order, international, and military situations.
The bill is intended to prevent “illegal” demonstrations against Canada’s COVID-19 restrictions. It was enacted in direct reaction to the continuing trucker blockades, which have caused significant disruption to cities including the country’s capital, Ottawa.
Blockades generated by massive trucks queuing up on the country’s freeways, as well as trading routes with the US, may be seen in cities across Canada. The blockades are also creating supply-chain bottlenecks all across country, hurting the country economy.
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