A lot of concerning voices came up when FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) said that it was working on a regulation plan for Money Services Businesses (MSBs) dealing in virtual currencies, the Bitcoin Foundation Canada, the official Canadian chapter of the lobby group, says that there is no likelihood of it coming before 2015.
The organization has been working for long for the digital currency and according to its report Bitcoin was no more likely to be used by criminals than any other tradable commodity like a currency, precious metals, gems and many other things. It is working towards the better understanding of the digital currency and spreading information among the policymakers.
The voices for regulating the digital currency coming from the government agencies have been laughed out by the people who think that the stories of Bitcoin involvement in drug peddling are being blown out of proportion. They are using the accusations to cut short the Bitcoin to size and help the national currency put unrealistic restrictions.
Regulatory Proposals are Unnecessary, Says the Bitcoin Foundation Report
There are a lot of cases that show that it’s not Bitcoin but other currencies that are being used for illegal drug trafficking. For instance, one study conducted by the United Nations Office on Drugs and Crime (UNODC) estimated that in 2009 criminal proceeds from drugs and criminal organizations reached 3.6% of global Gross Domestic Product (GDP).
The involvement of the USD has been significant yet none pointed out the role of the fiat. There is also the news that the Canadian financial regulator was bringing the Proceeds of Crime and Terrorism Financing Act, a list of rules that facilitate combating the laundering of proceeds of crime and combating the financing of terrorist activities.
The new law aims to cover entities such as virtual currency exchanges, not individuals or businesses that use virtual currencies for buying and selling goods and services. This definitely is targeting Bitcoin and other similar cryptocurrencies that have been putting a challenge for the government issued manipulative currencies.
Recently, the Bitcoin Foundation Canada came up with the report “Bitcoin and the Law”, a document that stresses the fact that Bitcoin is already regulated and that regulatory proposals are unnecessary. As the law regulating the digital currencies is not in force, the FINTRAC urged MSBs that are engaged in dealing in virtual currencies to register with the organization.
To contact the reporter of this story: Deepak Tiwari at email@example.com