Thanks for the context.
I disagree with the notion that Bitcoin should be regulated as a foreign currency. I tried registering with FINTRAC the other day. In that e-mail, I explained when I think Bitcoin can
not meet the requirements imposed on traditional MSBs:
I have been acting as a relay for Bitcointransactions for months.
The requirement to include detailed sender and receiver data with the transaction appears to be incompatible with Bitcoin.
Further, the concept of a Foreign Politically Exposed Person does not make a lot of sense with Bitcoin because the reporting requirements change if a border crossing is involved. Bitcoin has no concept of (in-planet) borders.
Edit
Not sure why the head of CaVirtex thinks that Bitcoin has only a $13 billion market cap (at 38:25) when it is actually closer to $4.5 trillion according to Bitcoin Charts. I almost get the impression that he is trying to minimize the size of the industry to make it seem easier to regulate (he was also corrected on there being only 20 alts, so maybe his info is a year out of date). Edit2: the video is from April) PEBKAC: only 4.5 Billion market cap.