Classification of cryptocurrencies always seems to be a challenging and however centre point for regulators. Recently, Chetan Phull, the Canadian Bar Association (CBA) called on parliament to legalize cryptocurrencies as ‘money’.
Chetan Phull, the CBA Lawyer and a founder of Smartblock Law Professional Corporation in Toronto believes that the present crypto hub posture constrains innovations. Initially, his crypto law firm is more focused on Cryptocurrencies, Blockchain Technology and IT contracts. With his experience in law and software development, he is familiar to speak about Canada’s regulatory climate.
Chetan Phull stress more on the issues concerning CurrencyAct and said;
“a contract denominated in cryptocurrency can only be legal in Canada if cryptocurrency is not money”.
Moreover, in order to sustain the growth of innovation in cryptocurrency pivot, the crypto law need to be updated and enable industries with easy process.
“The power to declare that cryptocurrency can be ‘money’ in commerce lies exclusively with Parliament. It Parliament should amend the Currency Act to formally legalize, and duly permit the enforcement of, cryptocurrency contracts that treat cryptocurrency as money”.
Further, Phull outlines regarding Currency Act stating that, the law is more likely to frame cryptocurrencies as a mode of exchange, security and service. However, the act states that payment contract involving funds must be denominating in fiat currency.
In his blog post, he explained that cryptocurrencies must be treated as a service for some profitable intentions. Since, it “appears to be permissible”.
He elaborated saying that,
“It is only a matter of time until cryptocurrency becomes a common medium of exchange in commerce. The law will need to adapt. That is why we are overdue for an update to the statutory definition of money”.
Further, Chetan Phull decides to call for Parliament on behalf of Smartblock to allow cryptocurrencies legalizing as money.
“Until then, the legality of cryptocurrency contracts appears to tenuously depend on how obviously the cryptocurrency is being treated as money. As well as whether or not the commodity view is realistic in any given case”.