With Canada’s letter from their Financial Transactions and Reports Analysis Centre (FINTRAC), we see a play of two paths by the North American powers. The paths are betokening of how dynamic, new and spontaneous Bitcoin and decentralized virtual currencies are.
If one is to believe that the movement towards “global governance” is a real one, we can see US and Canadian policies as part and parcel of a greater, singular policy.
The letter was sent to several prominent Bitcoin exchanges in the country. In it, the companies were absolved of money-laundering laws. But, just last week, US authorities used money laundering laws to freeze accounts of Mt. Gox for having operated as an “unlicensed money service business.”
In Canada, the exchanges are not money service businesses; that is, for the time being. This is betokening that masters, mostly in the commanding heights of finance, are not sure what to do with Bitcoin, and are also curious. There have been reports of commercial banks wishing to develop such virtual currencies as well, so you can see these different rulings as, perhaps in part, product development research.
The letter from the Canadian authorities said: “Your entity is not, at this time, engaged as a money services business in Canada as per the Proceeds of Crime (Money Laundering) and Terrorist Financing and its associated Regulations.
“In fact, your entity doesn’t provide the services of remitting and/or transferring funds for the sake of the service. The transfer of funds is simply a corollary of your actual service of buying and selling virtual currency. Therefore, you do not have to register your entity with us.”
Nonetheless, the banking system,unified as it is across the globe, has gone forth and shutdown accounts held by Canadian Bitcoin traders.
Eventually, policies in the US and Canada – and the rest of the world, for that matter – will begin to homogenize. In the meantime, Canada is a North American safehaven compared to what US authorities have implemented. Nonetheless, US citizens, if they should choose to relocate to Canada, will still carry plenty of Fatca responsibilities in the form of income reports, and, in due time, Canadian, US and global legislation will be unified in terms of Bitcoin.
That’s why GoldSilverBitcoin recommends diversifying one’s alternative portfolio. What better way to insure your Bitcoin holdings than with precious metals of gold and silver? The former is a novel experiment in money, and one is tried and tested tradition.