As required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Cometee’s meeting had as main topic the cryptocurrencies aspect, as regulators see them as an easy way to launder money. The reason is that cryptocurrencies are anonymous, difficult to trace, and have a history of being used by personalities, such as Edward Snowden and Julian Assange.

The committee meetings have as their goal to review and assess actions and plans for the PCMLTFA. Moreover, financial adviser IJW & Co. and law company Durand Morisseau submitted a 56-page joint brief, outlining that cryptocurrency transactions may be used by parties to move large amounts of wealth across borders, and that regulating, namely exchanges of fiat currencies for cryptocurrencies, would address the anti-money-laundering concerns of the cryptocurrency space.

As such, the Canadian House Finance Committee outlined three possibilities for how they will regulate the cryptocurrency space:

• Require fiat-to-crypto exchanges to register as money service businesses, which would place them under the extensive compliance laws of PCMLTFA, and help insure user’s funds.
• Create a national license for cryptocurrency exchanges operating in Canada, which would only be offered to exchanges that pass through rigorous screening and background checks.
• Regulate cryptocurrency wallet companies, so that any suspicious or unlawful transactions can be tracked or monitored by regulators.