Canada has classified all virtual currency transfers originating from Iran as high risk, pushing compliance costs to the maximum. Small and medium-sized institutions are likely to have to shut down operations.

Wu Shuo learned that the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) updated its compliance guidelines for financial transactions related to Iran on June 23, requiring reporting entities to treat all financial transactions originating from or destined for Iran as high-risk transactions. The guidelines clearly state that electronic funds transfers and virtual currency transfers involving Iran, regardless of the amount, must record the source of funds or virtual currency, the purpose of the transaction, and report to FINTRAC as required.