#CyberFLASH: Senate recommends Ottawa use a ‘light touch’ when regulating Bitcoin

Hacker-took-83K-Bitcoins-cyber-experts-620x330TORONTO – A report from Canada’s Senate says Ottawa should use a “light touch” when considering any regulation of Bitcoin and other digital currencies in order to avoid stifling the growth of these new technologies.

The report, the culmination of more than a year of research by the Standing Senate Committee on Banking, Trade and Commerce, recommends that the federal government employ “almost a hands-off approach” when it comes to virtual currencies, monitoring the situation as it evolves and only introducing regulations as necessary.

The Bitcoin Alliance of Canada says it welcomes the report’s findings and is urging the government, as well as the private sector, to consider them.

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 — computer code 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.

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