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The House's Canadian Finance Committee has recommended that the government begin to regulate cryptocurrencies to prevent money laundering, reports the Canadian digital newspaper iPolitics on November 14.
According to iPolitics, the Canadian Finance Finance Committee has suggested that cryptocurrencies should be regulated during the review of the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA), which occurs once every five years.
The committee held 18 PCMLTFA review meetings, which began in February. As a result of the review, the commission proposed three ways for the government to regulate cryptocurrencies.
The first recommendation is to control the exchange from fiat to cryptocurrency, defining the entity that conducts the exchange as a service of money.
This recommendation is in line with the draft of the new cryptocurrency regulation published in Canada on 9 June. The new regulation contained in the project defines cryptocurrency exchanges and payment operators as monetary service companies.
In Canada, these companies are subject to strict financial reporting guidelines and must comply with PCMLTFA.
The committee's second recommendation by the committee, as reported by iPolitics, is that the government requires a license to trade in cryptocurrency similar to BitLicense in New York. The article cites the suggestions of the financial advisor IJW & Co. and of the law firm Durand Morisseau LLP contained the part testimonials-testimonials of the report, which refers to the possibilities of cryptographic transactions questionable in the current unregulated environment:
"Cryptocurrency transactions can be used by the parties to move large amounts of wealth rapidly across borders and that regulation (exchange of legal currencies for cryptocurrencies) should address the (anti-money laundering) concerns of the cryptocurrency space."
The last recommendation of the committee for the government is to regulate the portfolios containing cryptocurrency to make tracking easier. The government is required to respond to the recommendations of the House of Commons in 120 days.
Cryptocurrency regulation is becoming increasingly applied around the world, with the US Securities and Exchange Commission (SEC) applying civil penalties this week to two Initial Coin Offerings (ICOs) for unrecorded securities.
Cointelegraph also recently published an analysis of the Financial Task Force (FATF) cryptography guidelines, which have been updated to combat money laundering and terrorist financing in Europe.
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