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Canada Bitcoin Regulation Will Allow Exchanges to Operate

With all of the excitement about Bitcoin, there is also a concern that governments will try to regulate the flow and restrict anonymity. Well, the team at Pokerati has an extensive article suggesting that Bitcoin exchanges won’t be regulated in Canada. Here is a summary:

Canada’s federal anti-money laundering agency, FinTRAC, has publicly indicated that it will not regulate certain bitcoin businesses because they don’t view bitcoins as “funds” within the meaning of applicable Canadian law. Specifically, transactions on a bitcoin exchange in Canada between parties exchanging bitcoins for Canadian dollars and vice versa will not, according to FinTRAC, engage the Money Services Business rules in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations. This could present interesting opportunities for those exploring new business models in the bitcoin space, but readers are cautioned that the federal Department of Finance might move to change the applicable regulations in future. This might be yet another instance of the law failing to keep pace with technology.

Read the full article “Canada Becomes Bitcoin Friendly.”