The Conservative government appears concerned that digital currencies could be used to fund terrorism.
On Tuesday (February 11), Minister of Finance Jim Flaherty tabled the 2014 budget, which describes Bitcoin and other virtual currencies as "emerging risks" threatening "Canada’s international leadership in the fight against money laundering and terrorist financing".
According to the budget plan, the government will introduce "anti-money laundering and anti-terrorist financing regulations for virtual currencies, such as Bitcoin".
The government also plans to apply the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to online casinos.
The Financial Transactions and Reports Analysis Centre of Canada, the country's financial intelligence agency, is set to get millions of dollars in new funding to implement these and other changes.
Meanwhile, Bitcoin users will continue to buy coffee, Indian food, massages, and yoga clothing with the currency.