Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Crowdfund Insider | Cali Haan | Nov 19, 2018
After holding a series of 18 meetings to review Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the House Finance Committee has recommended that the Government of Canada regulate cryptocurrency businesses to prevent criminal use, iPolitics reports.
The committee has been conducting meetings to review PCMLTFA laws since February, something required of at least one parliamentary committee every five years.
The committee has heard from over 70 expert witnesses since it started the review last February, including representatives from the financial advisory firm IJW & Co. and the law firm Durand Morisseau LLP, both of which submitted 65-page reports.
In its report to the government, the committee said that both firms warned:
“(I)n the absence of some degree of regulatory oversight, cryptocurrency transactions may be used by parties to swiftly move large amounts of wealth across borders.”
The committee said that its three recommendations to parliament accorded with those suggested by the firms:
Crypto-to-fiat gateways have previously been identified by American law enforcement personnel as choke points because crypto is so far rarely accepted at the retail level and must be converted to real-world currencies at some point.
With regards to licensing, early crypto exchanges like Kraken have fiercely criticized the New York Bitlicense program, calling it so onerous as to be anti-competitive and protective of the state’s mainstream and established financial services sector.
Under the Bitlicense program, an exchange domiciled in the state of New York must obtain a specific individual license. This involves fees and procedures and time lags in each.
See: SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Kraken and Coinbase both relocated to San Francisco, although the Winklevoss brothers, who own the Gemini exchange, opted to stay in New York and tough out the atmosphere in the hopes of one day becoming the institutional crypto-trading platform of choice in America’s financial capital.
Noteworthy crypto-wallet news in North America includes recent reports that Eric Voorhees, creator of the Shapeshift wallet, recently announced his formerly anonymous wallet service for crypto-to-crypto conversions (at a fee) would be requiring all users from now on to provide government ID.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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