The Federal government has revealed the 2023 Budget and it contains some eyebrow-raising promises to Canadians involved in crypto.
The Liberals’ 2023 budget plans propose granting law enforcement new powers to freeze or seize cryptocurrency suspected of being linked to criminal activity. The proposed measures aim to address money laundering, terrorist financing, and other financial crimes.
The financial sector must also report “sanctions-related information” to FINTRAC. The government has emphasized its commitment to addressing financial crime in recent budgets and announced the creation of a new Canada Financial Crimes Agency in 2022, which is currently being consulted on.
Regarding cryptocurrency, the budget mentions the recent volatility in crypto markets and the collapse of crypto trading platforms like FTX. It suggests that financial institutions and pension funds will be required to disclose their exposure to crypto assets.
While the budget focuses on volatility, fraud, money laundering, terrorist financing, and other financial crimes that could affect individuals, businesses, and the broader financial system, it does little to acknowledge the crypto scams that are widespread. Beginners are especially susceptible, and while the behaviour of institutions such as FTX affects Canadians, there is little to protect individuals from everyday scams.
Unfortunately, crypto is still the Wild West of the financial industry with little regulation and protection. At OCryptoCanada our aim is to help Canadians trade crypto safely. We recommend reading our articles The Best Canadian Crypto Exchanges and How to Buy Crypto in Canada in order to trade crypto with peace of mind. We also recommend familiarizing yourself with common crypto scams so you don’t fall victim to them. You can read about common crypto scams, what they look like, and how to avoid them in our article Common Crypto Scams and How to Avoid Them.
The government will propose further measures to protect Canadians from the risks of crypto in its upcoming fall economic and fiscal update. Perhaps measures included in that will address the needs of everyday crypto traders and individuals in need of better protection from scams.