The reality of Canada's inclusion of Bitcoin in AML law

[BitFrank]

Bitcoin Foundation Canada's statement here:

http://ca.bitcoinfoundation.org/inclusion-of-digital-currency-businesses-to-anti-money-laundering-law-should-come-as-no-surprise/

[franky1]

Division 19 would apply to businesses that deal in virtual currencies, such as virtual currency exchanges, and not to retail businesses that accept virtual currencies as a method of payment.

if your business model is a FIAT<->BTC touching exchange, then your a MSB.. and you need a licence.

if your business model is not about moving FIAT person to person.. and is just a bitcoin store, a game, service etc.. then dont worry

it's still all about the fiat. as that is their jurisdiction (canadian dollars is their property)

[Initscri]

Division 19 would apply to businesses that deal in virtual currencies, such as virtual currency exchanges, and not to retail businesses that accept virtual currencies as a method of payment.

if your business model is a FIAT<->BTC touching exchange, then your a MSB.. and you need a licence.

if your business model is not about moving FIAT person to person.. and is just a bitcoin store, a game, service etc.. then dont worry

it's still all about the fiat. as that is their jurisdiction (canadian dollars is their property)

Just for clarity, does the FIAT <-> BTC touching exchange model apply to average businesses/personal conversions of Bitcoin<->FIAT or only to businesses whose business model depends on it?

For example,

Would a business using BitPay's Bitcoin->Bank service be needing a license OR
Would a person converting Bitcoin to CAD be needing a license?

[allthingsluxury]

This is going to be interesting to see where Canada takes this law next. It's unfortunate that they are going this route.

[ArticMine]

Division 19 would apply to businesses that deal in virtual currencies, such as virtual currency exchanges, and not to retail businesses that accept virtual currencies as a method of payment.

if your business model is a FIAT<->BTC touching exchange, then your a MSB.. and you need a licence.

if your business model is not about moving FIAT person to person.. and is just a bitcoin store, a game, service etc.. then dont worry

it's still all about the fiat. as that is their jurisdiction (canadian dollars is their property)

Just for clarity, does the FIAT <-> BTC touching exchange model apply to average businesses/personal conversions of Bitcoin<->FIAT or only to businesses whose business model depends on it?

For example,

Would a business using BitPay's Bitcoin->Bank service be needing a license OR
Would a person converting Bitcoin to CAD be needing a license?

I very much doubt it just like a business accepting payments in USD or an individual converting EUR to CAD. We of course have to see the regulations but the essence of this legislation is to treat Bitcoin as money for the purposes of AML/KNC anti-money laundering etc. Who will be affected of course is Bitcoin exchanges etc. Interestingly Virtex is way ahead of the game here having already registered with FINTRAC and implemented AML/KNC etc.

Edit: This is just one more example of a government coming to the realization that Bitcoin is money and treating it as such.