Canada implements first official Bitcoin legislation

Wednesday 25 June 2014 13:42 CET | News

Canadian regulators have officially passed regulations which concern the use of Bitcoin and other digital currencies, according to the Canadian research and consultancy firm MPN.

Canada`s Governor General gave royal assent to Bill C-31, dubbed “An Act to Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014 and Other Measures” on 19 June 2014.

The bill contains provisions on Bitcoin and other virtual currencies which require similar reporting and regulatory standards applied by traditional financial markets. The bill deems Bitcoin as a money service business and it specifically informs traders in the virtual currencies business. It is expected to cover Bitcoin exchanges and ATMs.

Given the terms of the bill in question, Bitcoin exchanges will now be required to register with the consultancy firm, FINTRAC, report suspicious and other transactions, keep certain records, implement compliance plans and determine if any of their customers are politically exposed persons.

Bill C-31 applies to Bitcoin companies that have a place of business in Canada and outside Canada, who direct services at persons or entities in Canada.

It is estimated that almost USD 300 million will be invested in Bitcoin start-ups by venture capitalists by the end of 2014 worldwide, with Canada receiving the second largest portion of that funding after the US.

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Keywords: Canada, Bitcoin, regulation, legislation, digital currency, crypto-currency, online sales
Categories: Payments & Commerce
Countries: World
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