Canada on the Cusp of a Bitcoin Crackdown?

Canadian officialdom’scritical stance on Bitcoin continues, and now it is tangibly affectingcomponents of the Canadian Bitcoin network.

In light of Bank ofCanada governor Stephen Poloz’s parliamentary committee statement that “We’ve got a way to go before we need to bethinking about policy implications,” it comes somewhat as a surprise that aBitcoin mining company has had its operations suspended for at least threemonths due to the government “takingexception” to the wording on part of its website, as Vice.com reports.

Dominion Bitcoin’s CEOPeter Voldeng says it is one of the website’s hooks, which invited investors to“imagine purchasing shares in a goldmine,” that resulted in a temporary cease-trade order being filed by Saskatchewan’sFinancial and Consumer Affairs Authority, yesterday renewed for another threemonths.

“[Government officials] have absolutely no ideahow Bitcoin works or how people are dealing with it,” Voldeng told Vice.

Familiar unease

The stun comes hot onthe heels of a new report by Bank of Canada outlining among other things the “legal security and law enforcement issuesassociated with bitcoins” which it says may lead governments to “become concerned.”

Specifically, ithighlights what it sees as the chances that “bitcoinscould easily be used to facilitate criminal transactions and to evade taxes” beingexplicitly due to “the private nature ofBitcoin transactions.”

Such language isindicative of the same jitters experienced by the majority of first-worldgovernments eyeing Bitcoin’s continued increased popularity, but it remains tobe seen to what extent Canada is prepared to intervene in the environment.

At the same time,Canadian business sector is expanding its interest in Bitcoin considerably,with Vancouver-based Newnote Financial launching a pioneering TV advertising campaign for its Bitcoin platform, currently airing onBusiness News Network.

Evidence of a rapidlyincreasing rift in sentiment is thus becoming apparent in Canada, and theDominion Bitcoin debacle is evidence that it is a status quo which is unlikelyto continue for long.

“There’s no way they can control or influenceit,” said Voldeng, but itwould seem that the government is already testing the water in terms of makinglife more difficult for Bitcoin in Canada.


Follow us on Facebook