FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, has clarified some of their new Bitcoin regulations.
Specifically, they confirmed in a document that the updates made to the Proceeds of Crime and Terrorism Financing Act included in Bill C-31 won’t affect businesses or individuals which use Bitcoin and other virtual currencies.
It also confirmed that the new regulations are not yet being enforced. They will come into play “once regulations are published in the Canada Gazette”
The regulations are meant to cover virtual currency exchanges in order to protect consumers from another situation similar to Mt. Gox.
Industry Leaders Weigh In
Several figures in the Canadian Bitcoin world have weighed in on the new regulations, and what they could mean.
QuadrigaCX’s Gerald Cotten isn’t concerned, since the three largest Bitcoin exchanges in Canada are already abiding by FINTRAC regulations in anticipation of such a law coming into play.
Meanwhile, the Bitcoin Foundation of Canada has denounced the new regulations as unnecessary. Board member Jillian Friedman, along with Joseph Neudorfer believe the existing laws are sufficient to protect Canadian Bitcoiners from fraud. Both lawyers, they’ve done their research.
With Canada recently being proclaimed the second best place on Earth for Bitcoin businesses to operate, we can only hope these new government regulations won’t end up doing more harm than good.
FINTRAC Clarifies Upcoming Canadian Bitcoin Regulations
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