Cardano [ADA] is soon to be administered under regulatory norms that Canadian government is set to introduce in the cryptocurrency market. IOHK CEO and owner of Cardano [ADA], Charles Hoskinson greeted this measure by stating, “Well thanks, Canada.” BCFocus has reported that formal specification by IOHK assists in the emrgence of Cardano [ADA] wallet.
Canada government declared that businesses dealing with cryptocurrency including Cardano [ADA] coin are under the regulation of Money Services Businesses [MSBs]. Regulation of digital currency is a major concern in almost all the nations of the world. The new legal framework formulated in Canada will protect the financial system from activities concerning Anti-Terrorist Financing and Anti-Money Laundering.
Canada happens to be one of the first nations to deliberate on the conducive legal norms. These legal measures are meant to govern businesses involving digital currency like Bitcoin [BTC], Cardano [ADA] and others. A number of deficits in the financial structure has come under the government’s observation. Money laundering and terrorist financing activities are the two major issues that brought about the new amendments.
Official statement by the government of Canada
The Canadian government has released an official statement on this issue, stating,“The proposed amendments to the regulations would strengthen Canada’s AML/ATF Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; updating the schedules to the regulations; including foreign money service businesses (MSB) in Canada’s AML/ATF Regime; clarifying a number of existing requirements; and making minor technical amendments.”
The government explicitly stated, “Convertible virtual currencies are vulnerable to abuse for money laundering and terrorist activity financing purposes because they allow greater levels of anonymity, or in some cases complete anonymity, when compared to traditional non-cash payment methods. Virtual currencies can be accessed globally via online or mobile systems. They 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.”
As per the official release of the government of Canada, the legal amendments would lead to a definite amount involved in the unauthorised admin sector. The total cost in the unauthorised admin field would be increased which would be around $463,908. This would eventually impact the entire nation of worth $1 million along with minor business enterprises.
The emerging financial services are ought to get influenced by cryptocurrencies particularly, by the virtual transaction in a decentralised system. The decentralised digital payment mode is functional beyond the traditional system of finance.
In the release, the Canadian government has further mentioned about,“Due to these characteristics, virtual currencies are increasingly being used to facilitate fraud and cybercrime, and to purchase illicit goods and services on the dark Web.”
The advanced internet services and new payment facilitation mode paves the way for the foreigners to offer the MSB services. This new regulatory measure in Canada is applicable to all the virtual currencies involved in business transactions. However, Cardano [ADA] is particularly specified among all the market speculators.
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