A Canadian was recently arrested in the US and charged with money laundering using digital currency. Although, it is important to note that he apparently accepted "stolen money" in exchange for digital currency. You can find the full article here: http://bit.ly/1dGbZe7. And another related article here: http://bit.ly/1fuJnkz.
Digital currency, often referred to as "cryptocurrency", has been attracting a lot of attention lately. If these forms of digital currency are to become more mainstream, then they will need to find a way to integrate into the current legal framework. One could consider the legal framework that exists around the Canadian dollar and Canadian financial service providers. The Currency Act of Canada, http://bit.ly/1gPMebc, is the Act that creates the Canadian dollar. And Canadian financial service providers are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and numerous other acts, related regulations, and government policy.
Here is a link to some information about some digital currencies: http://bit.ly/1geEcqt. For rumours about possible future government regulation in Canada you can turn here: http://bit.ly/1ckjAOC and http://on.wsj.com/1hrgVHk. If you are a business or individual that is using digital currency, then it is a good idea to be aware of the law and consult with a lawyer. Unfortunately, you will likely be unable to "pay" your lawyer in digital currency. But, I, and many other lawyers, accept Interac e-Transfer if you really like to transfer value using a mobile phone app!
Matthew J. Van Den Hooven
Matthew is a lawyer based in Nanaimo, B.C. Please note that the accuracy of the information in this blog is not guaranteed and that the law does change. It is not a replacement for independent legal advice. Contact Matthew to arrange for an appointment today.