Canada’s House Finance Committee Tells Govt to Regulate Cryptos

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In Canada, the blockchain and crypto industry has been heating up for quite some time now. Miners are flocking to the country in their droves, and now the Canadian House Finance Committee has told the government to work on regulating cryptos. It hasn’t issued the statement as a warning, but as to help prevent illicit money being laundered via cryptocurrency – a fairly good reason to regulate the crypto space.
The House Finance Committee was directly talking about how to improve the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) to cover crypto assets as well.

Canadian Version of the BitLicense

Over in New York, the government has introduced the BitLicense. In order to interact with citizens of New York, firms dealing in the blockchain and cryptocurrency industry need to have a BitLicense, which regulates their activity. The BitLicense is seen as the gold standard for regulation in America, and countless firms have applied for one. Unfortunately, it’s not easy to obtain, and currently there are only about 10 firms in possession of it. BitPay was one of the most recent recipients of a BitLicense, obtaining it back in July, so it can now operate legally in the state.
A similar regulation to the BitLicense was one of the suggestions that the House Finance Committee put forward to the government, in a bid to help clean up and regulate the Canadian crypto industry. There are hundreds of scams around the world, and Canada rightly wants to protect itself from these entering its borders.

First Exchange Traded Crypto Products

Canada is the home to First Block Capital, and it’s making huge waves in the crypto world at the moment. Back in September, First Block Capital launched its pioneering Bitcoin Mutual Trust Fund, which is the first regulated financial instrument that goes out and buys Bitcoin with investors’ money – rather than selling investors a slice of exposure to Bitcoin the company already owns. When a fund holder sells their stake in the fund, First Block Capital will physically sell Bitcoin and give the money back to the clients. However, it’s currently only available to accredited investors, so casual investors will have to wait a little longer to buy Bitcoin with a stockbroker.

DLT ETF in Action

Canada also has an exchange traded fund (ETF) that focuses on firms using distributed ledger technology (DLT). Rather than being a traditional tech fund, the DLT ETF focuses on firms that are actually using DLT to improve and streamline their business.
Anyone can buy into the DLT ETF and gain exposure to big names in the DLT world such as Walmart, Sony, and IBM – all of whom are pioneering this new technology to improve their bottom line. This DLT ETF also comes from First Block Capital, a key player in Canada’s crypto evolution.
Canada is quickly becoming a hot bed for crypto and blockchain activity, so it’s vital that the government hop into action and start regulating the industry. The House Finance Committee will be presenting their proposals in front of the government very soon, it will then have 120 days to decide on an outcome. If it decides to regulate the crypto and blockchain industry in a similar way to Malta, we could see the first North American blockchain hub spring up overnight.