Canada Senate calls for ‘light touch’ regulating Bitcoin
TORONTO — A report from Canada’s Senate says Ottawa should use a “light touch” when considering any regulation of Bitcoin and other digital currencies, to avoid stifling the growth of these new technologies.
The report recommends that the federal government should employ “almost a hands off approach” when it comes to virtual currencies, monitoring the situation as it evolves and only introducing regulations as necessary.
Bitcoin is a digital currency that is exchanged through peer-to-peer computer networks and is not issued or controlled by a central bank or any other authority.
Virtual currencies like Bitcoin employ blockchain technology, which is computer code that that makes up the currency’s underlying architecture.
The Senate report says blockchain technology has many promising applications, and recommends that the federal government consider using it to enhance the protection of private information.
“Our committee was told that by cutting out third parties, blockchain technology can give consumers and governments a more effective level of online security — particularly relevant given the cyber attack on government of Canada websites this week,” Senator Irving Gerstein said during a news conference Friday.
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