Advisors need to unravel how this digital currency is going to revolutionize how they do business now, or risk being left in the dust, warns one bitcoin specialist.
Advisors who want to stay ahead of their game should get savvy about the bitcoin, suggests one legal expert.
Lagging behind its neighbour to the south, Canada is only just acknowledging the growing footprint this digital currency is making, focusing specifically on the potential threats posed. And, typically risk-adverse Canadians are hesitant to jump on the bandwagon, says anti-money laundering specialist and bitcoin legal expert Christine Duhaime.
“The government has been slow into getting around to regulating (bitcoins),” says Duhaime, a Canadian lawyer based out of B.C. “That has resulted in Canadians having a hands-off approach because they don’t want to get into something that they are unsure about and they know it’s not regulated, so they are concerned about that as well.”
Advisors appear to be influenced the same way. What they don’t know won’t hurt them, so to speak. “That’s the issue. They don’t know anything about it and they will only learn about it when they are absolutely forced to or their business is being affected by it,” Duhaime says. “But the thought leaders in the securities business are well aware of it and are investing in it.”
Media coverage is only fueling the tainted view. Bitcoin is likely most remembered from news reports earlier this year citing the hacking of some of the world's largest exchanges, and bankruptcies of the Japanese-based Mt.Gox and Alberta-based FlexCoin, after the company reported about $600,000 worth of bitcoins stolen from servers.
But, according to Duhaime, there is more to these invisible coins than hacking, money laundering and terrorism. In fact, opportunity awaits, she says, particularly for the wealth management industry. (continued)
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“It’s going to revolutionize even their (advisors') industry. So, I think they should pay attention. In the U.S., they are certainly paying attention and they are even investing in it,” she says, citing Goldman Sach’s backing of bitcoin. “They don’t want to be left out of that game when it moves to that realm in three, four or five years’ time.”
Duhaime suggests advisors verse themselves thoroughly in bitcoin technology by attending conferences since there is no official ‘bitcoin for dummies’ resource. And, think of the digital currency as the method of payment, that it is, for the future, which will inevitably lead to more regulatory rules and anti-money laundering (AML) risk-aversion practices.
“It’s a bit of a concern because people will be doing financial transactions through what they call the bitcoin protocol because it is via computer and peer-to-peer,” she explains. “You don’t need a middle man to transfer value.”
Despite talks taking place between the Bitcoin Alliance of Canada and the Ontario Securities Commission (OSC) and Quebec launching the first Bitcoin ATM this month,
Duhaime says that Canadian provinces, in general, are a long way off taking any particular stance on the digital currency.
“Wrapping their minds around bitcoin is going to take a much longer time in the securities realm,” says Duhaime, who is set to speak in Vancouver about bitcoin and its risks later this month. “In the U.S., especially, they are looking at bitcoin derivatives, so at some point in time bitcoin will evolve into a securities product. But we are not there yet in Canada. That dialogue is important to be having, but it’s too soon for Canada.”
In the meantime, the federal government is in the process of regulating the bitcoin as a money-service business, with draft legislation due in June.
"That will change everything because then in order to buy or sell you are going to have to go through a regulated entity," says Duhaime. "I think there will be much more buy-in and acceptance of it going forward."
What's your stance on the future of bitcoin? Tell WP your thoughts in the comment box below.
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Bitcoins in your client's back pocket?
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Lagging behind its neighbour to the south, Canada is only just acknowledging the growing footprint this digital currency is making, focusing specifically on the potential threats posed. And, typically risk-adverse Canadians are hesitant to jump on the bandwagon, says anti-money laundering specialist and bitcoin legal expert Christine Duhaime.
“The government has been slow into getting around to regulating (bitcoins),” says Duhaime, a Canadian lawyer based out of B.C. “That has resulted in Canadians having a hands-off approach because they don’t want to get into something that they are unsure about and they know it’s not regulated, so they are concerned about that as well.”
Advisors appear to be influenced the same way. What they don’t know won’t hurt them, so to speak. “That’s the issue. They don’t know anything about it and they will only learn about it when they are absolutely forced to or their business is being affected by it,” Duhaime says. “But the thought leaders in the securities business are well aware of it and are investing in it.”
Media coverage is only fueling the tainted view. Bitcoin is likely most remembered from news reports earlier this year citing the hacking of some of the world's largest exchanges, and bankruptcies of the Japanese-based Mt.Gox and Alberta-based FlexCoin, after the company reported about $600,000 worth of bitcoins stolen from servers.
But, according to Duhaime, there is more to these invisible coins than hacking, money laundering and terrorism. In fact, opportunity awaits, she says, particularly for the wealth management industry. (continued)
#pb#
“It’s going to revolutionize even their (advisors') industry. So, I think they should pay attention. In the U.S., they are certainly paying attention and they are even investing in it,” she says, citing Goldman Sach’s backing of bitcoin. “They don’t want to be left out of that game when it moves to that realm in three, four or five years’ time.”
Duhaime suggests advisors verse themselves thoroughly in bitcoin technology by attending conferences since there is no official ‘bitcoin for dummies’ resource. And, think of the digital currency as the method of payment, that it is, for the future, which will inevitably lead to more regulatory rules and anti-money laundering (AML) risk-aversion practices.
“It’s a bit of a concern because people will be doing financial transactions through what they call the bitcoin protocol because it is via computer and peer-to-peer,” she explains. “You don’t need a middle man to transfer value.”
Despite talks taking place between the Bitcoin Alliance of Canada and the Ontario Securities Commission (OSC) and Quebec launching the first Bitcoin ATM this month,
Duhaime says that Canadian provinces, in general, are a long way off taking any particular stance on the digital currency.
“Wrapping their minds around bitcoin is going to take a much longer time in the securities realm,” says Duhaime, who is set to speak in Vancouver about bitcoin and its risks later this month. “In the U.S., especially, they are looking at bitcoin derivatives, so at some point in time bitcoin will evolve into a securities product. But we are not there yet in Canada. That dialogue is important to be having, but it’s too soon for Canada.”
In the meantime, the federal government is in the process of regulating the bitcoin as a money-service business, with draft legislation due in June.
"That will change everything because then in order to buy or sell you are going to have to go through a regulated entity," says Duhaime. "I think there will be much more buy-in and acceptance of it going forward."
What's your stance on the future of bitcoin? Tell WP your thoughts in the comment box below.
Related Stories:
Bitcoins in your client's back pocket?
So-called bitcoin creator gets $28K
Another $600K hit for bitcoins
