Posts Tagged ‘financial intelligence unit’

FinTRAC continues bitcoin review

Undated internal FIU document looks at the issues and ideas around cryptocurrency

by , Feb 13, 2014 | 7:39 pm

On February 11th, David George-Cosh broke the story of the release of an undated internal document produced by FinTRAC addressing the challenges of cryptocurrencies, primarily bitcoin. FinTRAC is Canada’s anti-money laundering and counter-terrorist financing watchdog. The document is a slide deck that was produced further to an Access to Information Act request. The WSJ blog post on the release is here.

A copy of the deck that was released to the public under Access to Information is here.

It’s important to remember that most of what is in this deck does not represent a normative policy position being taken by FinTRAC on cryptocurrencies. (Though note that pages 24-25 of the .pdf document fairly characterizes how FinTRAC views bitcoin vis-a-vis money services businesses under the current Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations.) I think the bulk of it represents an earnest and honest attempt to canvass available resources and learn about bitcoin. Many bitcoin aficionados might take issue with how some points are set out and the substance of others. However, I think it’s a decent overview and a good start at fairly covering a lot of ground. Over the coming months, we may see how FinTRAC uses this knowledge as they work with the Department of Finance to introduce anti-money laundering and anti-terrorist financing regulations for cryptocurrencies, as promised in the recent federal budget.