In addition, the European Court of Justice might apply the licensing and supervision rules of the Payment Services Directive, which sets the regulations for payment services, to digital currencies. This is to ensure they can “promote better control and understanding of the market”.

If this happens, the PSD would need to revise their definition of funds, which currency only includes cash, bank and e-money, to also include crypto currency. This means they will likely have a wider change to their regulations that simply adding the PSD’s licensing and supervision regulations to digital currency.

We must wait to see what the proposed regulatory changes will be, as they are currently very vague. Very likely, digital currencies might be accepted officially into the European Union payment regulations, which could allow bitcoin business to thrive across Europe.

This could also be great for business in Canada, where our government has been waiting to decide on how to respond to bitcoin. In a report by the Canadian Standing Senate Committee on Banking, Trade and Commerce they announced that the “government should exercise a regulatory “light touch” that minimizes actions that might stifle the development of these new technologies”. If new regulations are tested in Europe and work, it might lead to adoption or refined to be improved in Canada.