2014 Canadian federal budget addresses ’emerging risks’ like bitcoin

Canadian Finance Minister Jim Flaherty unveiled the federal budget for 2014 on Tuesday. Although it isn’t believed to be a revolutionary or game changing federal budget, the Conservatives revealed plans to tighten rules and regulations in order to combat money laundering and terrorism financing through the use of bitcoin (BTC).

According to the budget documents, the federal government stated that it doesn’t recognize bitcoin as a legitimate currency, but it does address the fact that the digital currency is growing in popularity and usage. The “emerging risks” of bitcoin need to be tackled immediately.

bitcoin“It is important to continually improve Canada’s regime to address emerging risks, including virtual currencies such as Bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing.”

The government noted that the odds of bitcoin becoming legal tender are rather low because the virtual currency is currently used for illicit transactions and drug deals in different regions of the world.

Sometime this year, the government will initiate public consultations to establish an extensive structure to monitor the nation’s payments system. One of the ideas being proposed is requiring bitcoin ATM operators to report transactions.

We reported last month that the Department of Finance issued a statement confirming that “only Canadian bank notes and coins are recognized as legal tender in Canada” and “bitcoin digital ‘currency’ is not legal tender in Canada.”

The Canada Revenue Agency (CRA) has classified that digital currencies can be subjected to taxes like any other commodity.

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  • bitcoinIsHereToStay

    Like dollars are not used already by those terrorist financing or money laundering.

    Why don’t you fight the dollars too? Go home you control freak!

    Or wait, is he saying that as en excuse to fight a free currency that would liberate the world by the enslavement of the might dollars. Virutial currency free us from inflation and deflation currency controlled by goverment. It is a coincidence that he is a goverment member too?

  • Windrunner55

    money laundering and terrorism begins and ends in Ottawa!!! It is a well known fact that the banks launder money for cartels, and the government looks left while they pass right. Don’t try to instill fear in the bitcoin community with the money laundering issue. Clean up your own backyard first, government!!!!!

    Regulations are ALWAYS brought in to CONTROL, not to protect the citizenry. Just once, I would like to see a politician tell it like it is and not hid behind his shadow. Pathetic!!

    • DrChelsea

      Please shut the hell up all you libertarian burnouts. Terrorism, money laundering, Silk Road, Silk Road 2.0, Dread Pirate Roberts, Sheep Marketplace, fraud, scams, theft, fake exchanges, mob money, assassinations for hire, you name it. All to be found in the underground, shady, criminal world of bitcoin.
      Snowden – “The NSA is going to wipe bitcoin off the face of planet in 2014, stay tuned.”

  • BTCner

    Shoes are used in terrorism. We should regulate shoes.

  • reverb256

    Terrorism, laundering..
    What a bunch of nonsense.