Canada Signs First Ever Official Law Regulating Bitcoin

[keanbosch]

 The gloves are off for Bitcoin legality – Canada has implemented what is the first official national law on Bitcoin use.


http://www.ahametals.com/canada-signs-first-ever-official-law-regulating-bitcoin/

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[rapsaodan84]

3. Registration with FINTRAC

Sounds like bitcoin taxes for Canadians. But also media attention. So both good and bad.

[phillipsjk]

FINTRAC has nothing to do with taxes. They are all about tracking large flows of money.

As far as I know, registering as a MSB requires posting a $2 million bond so that you can pay the $2 million fine for failing to report "suspicious transactions" when required.

It is also not clear that this actually covers Bitcoin (though Bitcoin was explicitly mention in the budget speech, and this bill implements the budget). It only covers "virtual currencies", to be defined by regulation.

The Bank of China (which had previously banned using "Virtual currencies" (defined a tokens backed by a single non-government issuer) for real-world goods) considers Bitcoin a "Virtual commodity" instead.

I looked at the FINTRAC guidelines years ago when I was just becoming interested in Bitcoin. They don't make sense for Bitcoin because the reporting requirements change depending on which jurisdiction the sender and recipient reside in. You are also required to send this information with the transaction, which is expensive and dangerous (due to the lack of privacy) to do with the public block-chain.

[TrailingComet]

Thanks phillipsjk
Very illuminating as these are questions I have been wondering about myself

[Peter R]

I looked at the FINTRAC guidelines years ago when I was just becoming interested in Bitcoin. They don't make sense for Bitcoin because the reporting requirements change depending on which jurisdiction the sender and recipient reside in. You are also required to send this information with the transaction, which is expensive and dangerous (due to the lack of privacy) to do with the public block-chain.

The FINTRAC guidelines would apply to exchanges and other money-service businesses.  These businesses are most likely verifying their customers' identity anyways, so they already have the required information.

For a business selling digital products (where you don't care where your customer is from), FINTRAC guidelines don't matter because these businesses are not MSBs.  

So this seems like business as usual (but with improved clarity).  

[rext]

Regulation could also mean, cleared for local business to accept bitcoin as an alternative payment. But yea, throw taxes in as well.

[doo]

FINTRAC has nothing to do with taxes. They are all about tracking large flows of money.

As far as I know, registering as a MSB requires posting a $2 million bond so that you can pay the $2 million fine for failing to report "suspicious transactions" when required.

It is also not clear that this actually covers Bitcoin (though Bitcoin was explicitly mention in the budget speech, and this bill implements the budget). It only covers "virtual currencies", to be defined by regulation.

The Bank of China (which had previously banned using "Virtual currencies" (defined a tokens backed by a single non-government issuer) for real-world goods) considers Bitcoin a "Virtual commodity" instead.

I looked at the FINTRAC guidelines years ago when I was just becoming interested in Bitcoin. They don't make sense for Bitcoin because the reporting requirements change depending on which jurisdiction the sender and recipient reside in. You are also required to send this information with the transaction, which is expensive and dangerous (due to the lack of privacy) to do with the public block-chain.

What would be "suspicious transactions", only unusual large sums?

[AceWallen]

this sounds bullish. i hope other major countries follow shortly. in fact, shouldn't we be hearing news about NY state Bitlicenses soon?

[hloren70]

This is Bitcoin after all, so let's see these assclowns try to enforce it LOL

[phillipsjk]

What would be "suspicious transactions", only unusual large sums?

Not anymore. Everybody knows large sums get flagged. Also suspicious is:

• Several transactions over several days just under the reporting limits.
• Exchanging cash with somebody in the lobby.
• Taking a back-pack with you when visiting the safe-deposit boxes.
• Visiting a Branch location not near your home or place of work.
• Bringing in a large number of bills without knowing the total amount.
• Unusual knowledge or interest in reporting requirements.
• etc.

[franky1]

this is not specific to bitcoins.. this is about any business that touches FIAT that FIAT transactions need to be logged, analyzed and reported if suspisious.

if your doing a bitcoin only business and never handing customers FIAT from selling a large bitcoin amount.. your OK..

there are alot of bitcoin only exchanges (mintpal for instance) that do not touch FIAT. even if the people using the service are canadian, it does not matter. because thy are not using canadian dollars. so this is not a big deal in someways for the bitcoin community. but is a big deal for FIAT touching businesses..

.. i wonder how bitpay will respond

[blatchcorn]

Regulation = legality 

[Meuh6879]

regulary = taxation = speed up bitcoin adoption instead of 2 level water ... they kill itself.

[doo]

What would be "suspicious transactions", only unusual large sums?

Not anymore. Everybody knows large sums get flagged. Also suspicious is:

• Several transactions over several days just under the reporting limits.
• Exchanging cash with somebody in the lobby.
• Taking a back-pack with you when visiting the safe-deposit boxes.
• Visiting a Branch location not near your home or place of work.
• Bringing in a large number of bills without knowing the total amount.
• Unusual knowledge or interest in reporting requirements.
• etc.

In that case is using my fandangled new coin (Monero) a "suspicious transactions"

[chinacoinbase]

most reason for canada government is how to tax for net  of bitcoin. so..

[franky1]

most reason for canada government is how to tax for net  of bitcoin. so..

keyword bitcoin..

canadians.. move to litecoin

[LostDutchman]

The gloves are off for Bitcoin legality – Canada has implemented what is the first official national law on Bitcoin use.


http://www.ahametals.com/canada-signs-first-ever-official-law-regulating-bitcoin/

Great.

Just fucking great.

MORE government regulation and control!

From the citation:

"Home / Diversified Investments / Canada Signs First Ever Official Law Regulating Bitcoin
Canada Signs First Ever Official Law Regulating Bitcoin

Posted by: ahametals in Diversified Investments 15 days ago   0
inShare

June 23 (Coin Telegraph) — The gloves are off for Bitcoin legality – Canada has implemented what is the first official national law on Bitcoin use.

Its signing was quiet, notes Christine Duhaime, B.A., J.D., Financial Crime and Certified Anti-Money Laundering Specialist of Duhaime Law. Last Thursday, royal assent was given by Canada’s Governor General to the discretely-named Bill C-31, An Act to Implement Certain Provisions of the Budget Tabled in Parliament on February 11, 2014 and Other Measures (“Bill C-31“).

Canada has been toying with the idea of regulation for quite some time, as CoinTelegraph reported earlier this month, with the publication of a report entitled “How Should Bitcoin Be Regulated?” by the Montreal Economic Institute in May. Now, however, it would seem theory has definitively been put into practice.

The implications? Duhaime highlights what should be taken away from the pioneering event.

“The five most important aspects of Bill C-31 as they relate to Bitcoin are as follows:

1. Regulates Bitcoin as MSB – Bitcoin dealing, more specifically referred to as “dealing in virtual currencies” in Bill C-31, will be subject to the record keeping, verification procedures, suspicious transaction reporting and registration requirements under the PCMLTFA as a money services business.

2. Does not define “dealing in virtual currencies” - The phrase “dealing in virtual currencies” was left undefined and it is not known what the defined term will encompass in terms of business activities once defined by regulation.

3. Registration with FINTRAC - Bitcoin dealers will be required to register with FINTRAC and if successfully registered, to implement a complete anti-money laundering compliance regime."

[kuusj98]

Laws are one thing, enforcing them is another.

Just like piracy laws, I bet 0.000001% of the people downloading illegal things actually get jailed or have to pay a very large sum.

[jjc326]

Laws are one thing, enforcing them is another.

Just like piracy laws, I bet 0.000001% of the people downloading illegal things actually get jailed or have to pay a very large sum.

Seems like the little guy should be ok. You just want to make sure you don't draw attention to yourself or be the one or two big players on anything questionably legal. For instance you think the government is going to go after someone for not reporting like 5 BTC of mined income?  How would they even know you mined it?

[LostDutchman]

You will be sorry that this has happened.

[harles9]

Yeah, I don't see this one as being beneficial for Bitcoiners...

[LostDutchman]

Yeah, I don't see this one as being beneficial for Bitcoiners...

Nope, not at all!

[InwardContour]

Laws are one thing, enforcing them is another.

Just like piracy laws, I bet 0.000001% of the people downloading illegal things actually get jailed or have to pay a very large sum.

Seems like the little guy should be ok. You just want to make sure you don't draw attention to yourself or be the one or two big players on anything questionably legal. For instance you think the government is going to go after someone for not reporting like 5 BTC of mined income?  How would they even know you mined it?

Generally speaking this is true, however it is very well possible that law enforcement would want to be aggressive with prosecuting a smaller user for a number of reasons. They could want to send a message to others that they want everyone to follow the law, they could be trying to bring unrelated charges against the person, but can't find enough evidence, so they bring these charges, or it could be any number of other reasons.

[counter]

Laws are one thing, enforcing them is another.

Just like piracy laws, I bet 0.000001% of the people downloading illegal things actually get jailed or have to pay a very large sum.

Seems like the little guy should be ok. You just want to make sure you don't draw attention to yourself or be the one or two big players on anything questionably legal. For instance you think the government is going to go after someone for not reporting like 5 BTC of mined income?  How would they even know you mined it?

Generally speaking this is true, however it is very well possible that law enforcement would want to be aggressive with prosecuting a smaller user for a number of reasons. They could want to send a message to others that they want everyone to follow the law, they could be trying to bring unrelated charges against the person, but can't find enough evidence, so they bring these charges, or it could be any number of other reasons.

Possible but I think anyone who found themselves in such a situation with a competent legal representative could beat the charges brought against them generally speaking.  Going after the little guy would prove to be very ineffective in many ways.  Mainly the cost and time put into the case for such a small time offender would be an issue in my opinion.