Canada decided that Bitcoin and other crypto-currencies fall under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act this week. Using the usual scapegoat of fighting terrorism, Canada has put restrictions in place for platforms which trade crypto-currency.
Platforms which trade in currency must now register as Money Services Businesses under Canadian law. FINTRAC Policy--Money Services Businesses . They will now be subject to a plethora of regulations. The chief among these being transaction reporting requirements
The primary reporting requirement is any transaction of more than $10,000 CAD (About $7600 US). All "suspicious" transactions are also required to be reported. The definition of suspicious is left to the eyes of the beholder as the Canadian guidelines state "You are in the best position to know what are usual transactions for your business and therefore what is suspicious." This undermines the idea of crypto-currency transactions untraceable and anonymous. Transactions That Must Be Reported
A Conscious Conservative view is that government should get out of the currency regulation business besides issuing money accepted for public debts. Otherwise, people should be free to trade in any means upon which two individuals may agree. Looking for terrorists behind every bush leads to an excess of innocent people getting harassed for conducting respectable business.
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