In May 2021, the total value of cryptocurrency globally
surpassed USD $2.5 trillion, and continues its emergence as a new
asset class.1
Governments in Canada and around the world are updating
regulatory requirements in response to the new innovations in
financial technologies.
In the past, there has been regulatory uncertainty surrounding
cryptocurrencies in Canada. However, entities dealing in
“virtual currency” now face increasing reporting and
monitoring requirements similar to those imposed on traditional
financial institutions.
In Canada, a series of recent amendments to the
federal Proceeds of Crime (Money
Laundering) and Terrorist Financing
Act (PCMLTFA) and related regulations address
“virtual currency” transactions.2 These
changes are discussed below.
