CHFC: Cryptocurrencies Should Be Regulated To Prevent Money Laundering

A recommendation from the Canadian House Finance Committee for regulating cryptocurrencies to prevent money laundering is in the blockchain news today according to a report from the Canadian digital newspaper iPolitics.

The Canadian House Finance Committee proposed a suggestion to regulate cryptocurrencies during the review of the Proceeds of Crime Money Laundering and Terrorist Financing Act that happens once in five years.

The committee started meetings in February 2018 and came up with a couple of ideas on how the government could regulate cryptocurrencies.

The first idea is to control exchanges that allow fiat to cryptocurrency while defining the entity that provides the exchange as a service business. The second idea is backed up by the new regulation released in Canada this summer where cryptocurrencies are defined and exchanges as money-service businesses.

The second recommendation is meant for the government to require a license from crypto exchanges much like New York’s BitLicense. In the article there are plenty of suggestions by the IJW financial adviser and law firm Duran Morrisseau which refer the dubious crypto transactions done in an unregulated space:

 “Cryptocurrency transactions may be used by parties to swiftly move large amounts of wealth across borders, and that regulating (exchanges of fiat currencies for cryptocurrencies) would address the (anti-money-laundering) concerns of the cryptocurrency space.”

The last recommendation is to regulate all crypto-wallets to make tracking easier. The government is required to provide an answer to these suggestions in 120 days.

Crypto regulation is a major subject around the world and many countries are implementing the regulation.