The Canadian Press Published Monday, July 28, 2014 4:15PM EDT Last Updated Monday, July 28, 2014 6:26PM EDT
OTTAWA – A newly disclosed Finance Department memo warns that the high level of anonymity associated with Bitcoin transactions may make the virtual currency an attractive payment method for criminals.
The internal memo, prepared for former finance minister Jim Flaherty, says while the degree of criminal activity involving Bitcoin is unclear, some have raised flags about its potential to fund illicit activity.
Bitcoin is a digital currency exchanged through computer transactions without the oversight of a central bank.In his final budget in February, Flaherty announced measures to bring Bitcoin transactions within the scope of Canada’s anti-money laundering law. The memo is among several internal notes — including an RCMP analysis — that reveal the concern among federal officials about Bitcoin and other virtual currencies.