Quietly, Canada has amended money laundering bill to cover bitcoin and other cryptocurrency on June 19th. Christine Duhaime, a Financial Crime and Certified Anti-Money Laundering Specialist, mentioned five important aspects of the bill in regard of Bitcoin.

Quietly, Canada has amended money laundering bill to cover bitcoin and other cryptocurrency on June 19th. Governor General of Canada has given Royal Assent to Bill C-31 that amends Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act of 2000 (PCMLTFA) to include Bitcoin.

Signed Bitcoin in Canada

Christine Duhaime, a Financial Crime and Certified Anti-Money Laundering Specialist, mentioned five important aspects of the bill in regard of Bitcoin:

  1. Bitcoin dealing is categorized under money service business, and will be subject to the record keeping, verification procedures, suspicious transaction reporting and registration requirements under the PCMLTFA.
  2. The bill has not define what dealing in virtual currencies mean.
  3. Bitcoin dealers both foreign-based and Canada-based are required to register with FINTRAC.
  4. The bill targets foreign Bitcoin dealers that direct their services to Canada.
  5. The bill prevents bank services for unregistered Bitcoin companies.

The details imply that companies that provides financial services related to Bitcoin in Canada, including Bitcoin exchanges, are bound register themselves and implement all of the required anti-money laundering measures. Otherwise, they will not be able to receive bank services.

Discussions in Bitcoin news services such as Cointelegraph and Coindesk has fired up, but how the related companies will respond to the new law is still unknown. The bill has not come into effect yet, because the Parliament will have to decide when the law start to be enforced.

On March this year, the US tax agency, IRS, has effected new rule that have turned Bitcoin into a subject of tax. Those who mine bitcoin and those who receive it as payment have to report them and pay tax as if it is stock investment. These US and Canada regulations, on one hand is a possible start of long-term answer to Bitcoin legal questions. However, it is also a possible threat to the growing system.