Canada is taking a significant step towards regulating the cryptocurrency industry 
as it announces the implementation of a new financial law that mandates annual 
disclosure of crypto transactions by 2027. The regulations, aimed at preventing 
money laundering and terrorist financing, will require crypto service providers to 
disclose transaction values, customer information, and other details. 
The Canadian authorities plan to utilize the Crypto-Asset Reporting Framework (CARF) 
developed by the OECD to ensure transparency and restore trust in the financial 
system. The government has allocated CA$51.6 million to the Canada Revenue Agency 
(CRA) to support the implementation of these new regulations. 
The move comes as part of a larger effort to combat financial crimes and ensure the 
security of crypto transactions.

Introduction of new financial law

The Canadian authorities have announced the introduction of a new financial law that 
will specifically target cryptocurrency service providers. This decision was made in
connection with the federal budget regulations that were implemented in 2024. 
The focus of this new law is to ensure elaborate reporting practices within the 
cryptocurrency industry.

Mandatory annual disclosure of transaction values ​​and details

One of the main rules outlined in the new financial law is the requirement for 
cryptocurrency service providers to disclose the annual transaction values ​​and 
details of their operations. This information will provide regulators with valuable 
insights into the volume and nature of cryptocurrency transactions taking place in 
Canada. By mandating this disclosure, the government aims to prevent money laundering 
and terrorist financing through cryptocurrencies.

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