Canada Seeks to Keep a Closer Eye on Bitcoin and Other Digital Currencies

Jayanand Sagar | February 11, 2014 | 5:35 pm

Canada Seeks to Keep a Closer Eye on Bitcoin and Other Digital Currencies

Jayanand Sagar | February 11, 2014 | 5:35 pm

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While Canada seems to be at the forefront of innovation and adoption of bitcoin, the country’s government is keen to keep a closer eye on the digital currency, along with its counterparts.

The news was revealed in a federal budget Tuesday, according to Reuters, who notes that the country will “toughen” rules and regulations to prevent money laundering and terrorism financing.

“It is important to continually improve Canada’s regime to address emerging risks, including virtual currencies such as Bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing.”

Canada’s concern is valid, and it’s been echoed many times by other world governments, who fear individuals may use bitcoin’s selling points (lack of governmental authority, some level of anonymity, etc.) to their advantage for malevolent purposes.

It highlights in the impending wave of regulation and rules the community can expect to see perhaps as soon as this year, largely due to the immense growth the currency has seen in the past year or so (thanks to dramatic price increases that eventually peaked at over $1200 in late 2013). With more and more businesses accepting the digital currency, there’s a whole lot more of it changing hands today than there was this time last year. As such, it shouldn’t come as a surprise that governments want to keep their watchful eyes on developments in this realm. [via Reuters]

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