To Fight Money Laundering, Canada Prepares to tighten Noose on Bitcoin

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To Fight Money Laundering, Canada Prepares to tighten Noose on Bitcoin
To Fight Money Laundering, Canada Prepares to tighten Noose on Bitcoin

To Fight Money Laundering, Canada Prepares to tighten Noose on Bitcoin

Canada which has been in the news for the first ever Bitcoin ATMs is all set to regulate Bitcoin. A signal regarding the measures to control Bitcoin to discourage money laundering came when the country’s finance minister Jim Flaherty during his federal budget signaled Bitcoin and other digital currencies, and asked for the requirement for a law to regulate them.

In his federal budget presentation he said that it is important to continually improve Canada’s regime to address emerging risks, including virtual currencies, such as Bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing. The neighboring country the U.S. has faced a lot of trouble as Bitcoin was being used by some organizations for drug trafficking.

Now signals are emerging that Canada is about to tighten its grip on Bitcoin and other decentralized digital currencies so that these are not used for drug trafficking and other malafide activities. In his budget presentation Jim Flaherty said that anti-money laundering and anti-terrorist financing regulations for virtual currencies, such as Bitcoin is required.

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It is expected that any such law that regulated Bitcoin, it will be the handy work of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada’ financial intelligence unit. However, it has to be noted that FINTRAC has practically ignored Bitcoin since its inception. Now since the Federal government is willing to intervene, it looks it will have to frame laws to regulate Bitcoin.

Government Willing to Control Bitcoin, Bylls Allows Customers to Pay Bills in Bitcoin
Canadian firm Bylls does not seem to be affected by what the Canadian government officials think about the digital currency. Whereas the Canada government is mulling a plan to regulate Bitcoin, Canadian firm Bylls has become one of the first to offer bill payment in Bitcoins. It is available currently only in Canada for users to pay around 6,000 Canadian organizations including the government.

According to the sources opening up 6,000 companies in Canada for Bitcoin payments is quite a leap for the digital currency and the company as well. Currently, users can pay up to $1000 in bills per month if unverified, or $5000 if they verify using the miiCard system.
Regarding the charges, the fee structure starts at $3 for smaller bills, and progresses up to $6 for bills between $150 and $499. Any bill exceeding $499 will be then charged 1%.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

  • BillB

    “Canada’s REGIME”!!!! Very telling…