Wednesday, February 12, 2014

Canada to Regulate Bitcoin

Canada will bring in new anti-money laundering and anti-terrorist financing laws aimed at preventing abuses of virtual currencies such as Bitcoin, the finance minister confirmed Wednesday.

Asked about Bitcoin, a so-called "cryptocurrency" that is gaining in popularity both as an investment and as a way to make online payments, Jim Flaherty said: "We're going to have a look at it."

The Canadian government had announced its plan to tighten rules around the use of virtual currencies in the federal budget a day earlier, but no details were provided.

The budget document said Canada would "address emerging risks, including virtual currencies, such as Bitcoin, that threaten Canada's international leadership in the fight against money laundering and terrorist financing."

The proposed legislation follows recommendations in a March 2013 report by a senate banking committee.

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