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Canadian finance committee suggests crypto regulation to stop money laundering

18 Nov, 2018
by David Robb
News
Canadian finance committee suggests crypto regulation to stop money laundering

Canada's House Finance Committee recently undertook a review of the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA), which it does once every five years. During the review, a new proposal on the regulation of cryptocurrencies was put forward.

According to iPolitics.ca, the review cites a lengthy report by financial adviser IJW & Co. and law firm Durand Morisseau LLP, which recommends increased regulation in crypto. It claims that "in the absence of some degree of regulatory oversight, cryptocurrency transactions may be used by parties to swiftly move large amounts of wealth across borders, and that regulating (exchanges of fiat currencies for cryptocurrencies) would address the (anti-money-laundering) concerns of the cryptocurrency space".

New regulations could include the introduction of a licensing process for businesses that deal with digital currencies, in a similar scheme to the state of New York's BitLicense. Cryptocurrency exchanges that deal with fiat currency are particularly likely to be affected by the new proposals. They can be considered as money service businesses, and as such must follow strict financial reporting guidelines in compliance with the PCMLTFA. 

Canadian authorities may also take the step of regulating cryptocurrency wallets, in order to track transactions more carefully and prevent any hacking or violations of financial laws. A response to the review will go ahead within 120 days.

Read more: 5 percent of Canadians own Bitcoin, according to Bank of CanadaVancouver crypto exchange & CIBC clash in court over frozen crypto accounts

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Read more about:Canada

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