Bitcoin regulation: Bitcoin Foundation Canada comments Montreal Economic Institute report -

Bitcoin regulation: Bitcoin Foundation Canada comments Montreal Economic Institute report

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The Bitcoin Foundation Canada welcomes the publication of a report on Bitcoin regulation in Canada, entitled “How should Bitcoin be regulated?”  The growing interest of Canada’s economic community towards Bitcoin is proof that this new technology provides a credible alternative to traditional monetary and banking systems.

Government intervention is not required for Bitcoin to develop and become accepted by the Canadian public. The Bitcoin network is completely decentralized and it simply cannot be subjected to government control.

However, a growing number of Canadian businesses and start-ups have been created to provide services which make using the Bitcoin protocol and interacting on the network safer and more convenient. Canadian authorities must maintain their current neutral regulatory stance if these businesses are to continue investing and creating jobs in Canada.

It is perfectly normal for governments to ask Bitcoin exchange platforms which facilitate the exchange of bitcoins and fiat currencies to identify their costumers for anti-money-laundering purposes, a requirement which we expect to be regulated in Canada in the following months. We believe this would suffice in clarifying the legal framework surrounding Bitcoin and that no other regulation is needed in the near future.

Technology-specific regulation targeting businesses that make use of the Bitcoin protocol would be discriminatory and could limit their growth. For instance, the “Bit-Licenses” currently being discussed in the State of New York could impose an unjustified burden on Bitcoin startups which may prompt them to establish themselves in another jurisdiction. Such a situation should be avoided in Canada.

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