Why is additional information required for some crypto deposits and withdrawals?

  • Updated

Bitbuy is a registered Money Services Business (MSB) regulated under the Proceeds of Crime, Money Laundering, and Terrorist Financing Act (PCMLTF) as administered by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). As of June 1st, 2021, many regulations related to Virtual Currencies (VC) came into effect, one of them known as the "Travel Rule", which requires us to collect the following information on VC transfers over $1,000 CAD in value:

  • the name, address and the account number or other reference number (if any) of the person or entity who requested the transfer (originator information); and 
  • the name, address and the account number or other reference number (if any) of the beneficiary. 

Bitbuy must comply with the Travel Rule requirement and take reasonable measures to ask for the information where required. When applicable, other information like Date of Birth, Occupation, or Nature of the Business may also be requested.

Why is this information necessary?

The Travel Rule has been put in place by the Department of Finance under the PCMLTF in order to comply with Recommendation 16 under the global governing body, Financial Action Task Force (FATF). This is a requirement for all MSBs in Canada dealing in VC, including Bitbuy. These MSBs had some reprieve from June 1st, 2021 to November 30, 2021, but are required to ensure that they are fully compliant as of December 1, 2021.

How does this benefit me?

As we continue to work with regulators to meet compliance requirements and combat illicit activities, Bitbuy can continue to be Canada's most trusted, secure, and safe crypto platform to better serve you long term.

For more information on these requirements, please visit: https://www.fintrac-canafe.gc.ca/guidance-directives/transaction-operation/travel-acheminement/1-eng

Was this article helpful?

4 out of 6 found this helpful

Have more questions? Submit a request