Canada is currently making efforts to add in new revisions to an already existing, but not yet enforced, regulation related to cryptocurrencies. Amendments are being made to 2014’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTF) which are requiring businesses that engage in digital currencies to have themselves registered with Canada’s federal financial intelligence unit or FINTRAC. The law is set to be updated during Monday’s parliamentary hearing. However, an expert on cryptocurrency claims that more regulations beyond the ones already existing will only halt innovation.
The PCMLTF was last reviewed in 2013. Changes recommended that year lead to the 2014 revised PCMLTF despite the non-enforcement of the new regulations added. Since that time, the cryptocurrency market has gone through drastic changes. The bitcoin, for one, was originally valued at $850 USD but is now $8,500. Any proposed regulations will be made available to the public via the Canada Gazette published every Saturday.
The government of Canada’s Standing Committee on Finance will be attending the series of hearings that will review the PCMLTF Act. Once the hearings are done, a report detailing final recommendations for the update of the PMCLTF will be available for the House of Commons. Besides the PCMLTF Act, it also gave the go signal for the first Blockchain-based Exchange Traded Fund. Also, an Ethereum-based securities clearing and settlement platform will be launched by the Canadian Securities Exchange – a move that will give companies the opportunity to raise capital via security tokens. Companies which issue Security Token Offerings through the platform of the Canadian Securities Exchange will “be subject to full regulation by applicable securities commissions”.
Canada joins the list of countries that are starting the journey to regulate cryptocurrency. It is also working to become a worldwide hub for blockchain technology – a future that will require the Canadian cryptocurrency industry to positively work with the government with regards to policy.