Canada Regulates Bitcoin

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ForexMinute.com – After months of speculation, Canada has finally joined an extensive list of countries that have regulated Bitcoin – the world’s leading cryptocurrency. The regulation is brought by amending Proceeds of Crime (Money Laundering) and Terrorist Financing Act of 2000. This act will put certain restrictions over Bitcoin-related businesses and their day-to-day transactions.

“Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things enhances the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses.”

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The bill was first introduced in March and since then is debated heavily in the Canadian Parliament. It finally got placed inside the law book on June 19th, following which Bitcoin became liable enough to fall under the guidelines of the Canadian government. Moreover, it is not just Bitcoin which will be under the government’s radar, but the law will also encompass other cryptocurrencies, including the likes of Litecoin, Dogecoin, Darkcoin, etc.

As per the implied bill, any Bitcoin business will now get a tag of Money Services Businesses. Thus, such businesses will be required to report certain requirements set by the Canadian government, such as keeping records, planting verification procedures, reporting distrustful transactions, and registration of requirements. To ensure an unbreakable connectivity, the Bitcoin businesses will have to register themselves with the Financial Transactions and Report Analysis Centre as well. Failing to do so will imply heavy penalties on the business.

The law will be imposed on both Canada based businesses, as well foreign companies that are offering services inside the country.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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