The cloud of uncertainty surrounding bitcoin regulations has always been a major obstacle on the road to mainstream adoption. Despite the positive comments made by many mainstream officials, the cryptocurrency industry still suffers from the stigma ingrained in society.
In a major win for Bitcoin enthusiasts, Canada officially accepted Bitcoin as a regulated form of money. Bitcoin-based businesses in the country will be treated like any other form of business involved in currency exchange or payment processing.
In a series of tweets by Francis Pouliot, Chief Executive of BitcoinBull, it was explained how Bitcoin went from being considered a rogue asset to being an integral part of the financial ecosystem. Canada was one of the countries still dealing with the concept of cryptocurrencies at its nascent stages, with Pouliot playing a central role. According to the BitcoinBull official:
“The decision to add Bitcoin businesses to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act was made by Parliament in 2014 as part of Bill C-31 but it took 5 years to agree/negotiate what specific activities are covered and the technicalities of regulation.”
Pouliet admitted that he was not fully satisfied with the latest decision because some of the requests that had been made earlier had still been skirted. Under the new amendments, any user involved in transactions above the $10,000 mark must report this to the specific financial authorities. This particular decision differs in the case of fiat currencies because it does not apply to fiat bank transactions.
According to the Bitcoin evangelist, typical users do not need to worry about new regulations because they will not be affected internally. New changes will definitely affect cash-based businesses like the Bitcoin ATMs and the Bitcoin business. Organizations that already have strict KYC laws do not need to worry about changes due to their stance within the government. It is expected that additional provisions, such as large-scale virtual currency transaction reporting, will also be included in the Regulations by 1 June 2021.
It is stated that Canadian MSBs that are regulated for AML purposes must identify certain customers either because of an ongoing service agreement or because the customer performs specific types of transactions. Pouliot claimed that stronger regulations exist in the future, but more work needs to be done. At press time, Bitcoin enjoyed a bullish hold on the charts. The largest cryptocurrency in the world traded $9530 with a total market cap of $175,289 billion.