On June 19th, the federal government gave Royal Assent to Bill C-31, An Act to Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014 and Other Measures. This legislation makes Canada one of the first countries to regulate digital currencies.
This bill includes provisions which make virtual currencies such as Bitcoin subject to the same standards that apply to traditional financial markets. All Bitcoin exchanges in Canada must be registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Foreign companies that are using Bitcoin and doing business in Canada will also need to comply with Canada’s anti-money laundering legislation.
Canada approving this law is a step in regulating digital currencies but it may take another 6 to 12 months for parliament to put it into effect.
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