Upcoming Canadian regulatory changes to Bitcoin trades that affect you as our customer

Bitcoin is a positive force in the world that allows for the financial inclusion of billions of people who have little access to banking or other forms of financing.

Despite Bitcoin being around since 2009, Canadian Bitcoin buyers and sellers have operated under a patchwork of regulatory guidelines until an amendment to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) came out in July 2019.

At Yap, we have been proactive in adopting a sensible regulatory framework since our inception. The general consensus around Bitcoin’s classification as an asset class is that Bitcoin is a digital alternative to a store of value commodity*, such as gold, so we adopted the same rules that apply to dealers in precious metal and stones (such as gold and silver) to our Bitcoin trades. As such, we require the full name and address, valid ID, phone number, and source of funds for the purchase of BTC amount $10,000 or over in a single transaction.

However, as of June 1st, 2020, when the new Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) (PCMLTFA) regulations come into force, we will begin recording the full name and address, valid ID, and phone number for every cryptocurrency trade over $1,000 CAD.

While we find the new requirement excessive and onerous to ordinary Bitcoin buyers and sellers, we commit to comply with the updated PCMLTFA rules as well as FINTRAC’s new regulatory changes to their full extent.

We believe deeply that Bitcoin offers an elegant technological solution to billions of people in the world who are unbanked and underbanked. Bitcoin is not to be feared but to be embraced. To promote this vision and mission, Yap will continue to proactively engage with regulators to ensure that Bitcoin is positively embraced all while following existing laws and applicable regulatory frameworks.

[*] “The Bitcoin Standard” (2018) by Saifedean Ammous