Bitcoin Global News (BGN)
November 20, 2018 -- ADVFN Crypto NewsWire -- In February of this
year, the finance committee of Canada’s government began reviewing
proposals for officially regulating cryptocurrencies in their
country as a whole. The most prominent proposal was made in June of
this year, and their movements of attitude and specific concerns of
the reviewing committee are beginning to align with that
proposal.
While conducting the review the
finance committee held 18 separate meetings, including 70
testimonies from expert witnesses. The PCMLTFA mandates a review
only every five years, so this is a crucial time to make major
updates to their financial infrastructure.
Ultimately, the regulators in favor
of cryptocurrency see no other option in order to curb wide spread
money laundering. The proposal lays out clear cut definitions of
all things related to cryptocurrencies and their interaction with
the traditional fiat systems in place. They acknowledge the power
of cryptocurrencies, but also the dangers:
-
Complete anonymity is
possible
-
Can be accessed globally via online
or mobile systems
-
Allows for the rapid transfer of
funds within or across borders
-
No intermediary required
-
Characterized by non-face-to-face
customer relationships
-
Can circumvent the “brick and
mortar” financial system
-
Because of this qualities, virtual
can be used to facilitate fraud and cybercrime, as well as to
purchase illicit goods and services.
In consideration of making no
regulatory adjustments vs maintaining the status quo, there is no
room for debate according to the proposal:
“Maintaining the status quo was
determined not to be viable, given that without these regulatory
changes, deficiencies in Canada’s AML/ATF Regime would remain in
place. This would compromise the integrity of Canada’s financial
system and the security and safety of Canadians at home and abroad.
Furthermore, not addressing deficiencies in compliance with FATF
standards would have significant adverse consequences for
Canada.”
The proposal has several basic
updates to the regulations that aim to strengthen Canada’s AML/ATF
Regime in the following categories:
-
Due diligence
requirements
-
Beneficial ownership reporting
requirements
-
Regulations for businesses dealing
in virtual currency
-
updating the schedules to the
regulations
-
Clarifying a number of existing
requirements
-
Minor technical
amendments.
In the long term, it assess the
proposal with a cost-benefit statement where the proposed
amendments are estimated at $1,867,698 (present value [PV]) in
benefits with $61,132,622 (PV) in costs, for a net cost of
$59,264,925 (PV). This is described over a 10-year period in 2012
dollars. But this does not include the non immediately quantifiable
monetary benefits:
“Furthermore, the amendments
positively impact Canada’s international reputation, and would lead
to regulatory efficiencies with other countries’ anti-money
laundering and anti-terrorist financing regimes, making it easier
for Canadian businesses to operate internationally.”
By: BGN Editorial Staff