Blockchain in Real Estate, FINTRAC

Regulating Blockchain in Real Estate: Implications to the Role of
FINTRAC?
Introduction
Blockchain technology is broadly expected to revolutionize society. In particular there is
heightened excitement within the real estate industry as some regard it as a real game changer. 1
While these potential benefits may abound, the real estate sector is being targeted by criminals for
its usability as a tool for money laundering. As such there is a need for the regulation of any and
all suspicious transactions.2 This is done through various regulation regimes, one of which is the
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC),3 which is purposed
with preventing and deterring money laundering and terrorism financing. The potential application
of blockchain within the industry then, truly begs for a measured analysis of what implications
there may be to FINTRAC regulation, both from a policy perspective but also its application within
the real estate industry.
Following, I will delve deeper into how this blockchain revolution may materialise within the
context of real estate. What I want to know is how the use of blockchain may support or detract
from the FINTRAC regulation currently being used. Specifically, in analysing the positive and
negative aspects of the technology and how it will be applied within the industry I will be able to
point out the possible benefits as well as any concerns with its implementation.
Firstly, I will give a brief overview of blockchain, providing just the basics so as to not detract
from the overall purpose of the paper. Next, a brief explanation of the FINTRAC regulation will
provide a foundation for a reasoned understanding and analysis of how money laundering is in
active operation. Then I will analyse the application of blockchain within real estate, giving
specific attention to the potential implications to FINTRAC compliance. This will populate our
conclusions about blockchain in real estate and whether it be for the positive or negative of the
industry.
Blockchain
Blockchain has in general been described as an “undeniably ingenious invention” 4, and touted as
an internet of value. This is because it provides the opportunity to allow for secure and
incorruptible transactions and data storage. I will not give a complete technical analysis of
blockchain specifically, I will only highlight that which is useful to our discussion. To that end,
blockchain can be thought of as a global spreadsheet. Let me illustrate this point by way of analogy.
Think of blockchain like the online document sharing system google docs. If you and I each open
a document in the cloud to collaborate on it, we can both make changes, add or delete as required.
1
Deloitte, ‘Blockchain: the next game changer in real estate?’ (Deloitte, 3 March 2016)
https://www2.deloitte.com/nl/nl/pages/real-estate/articles/blockchain-the-next-game-changer-in-real-estate.html
accessed 13 May 2017
2
Securefact, ‘Canadian Real Estate Industry on FINTRAC Watch List’ (Securefact, 30 November 2016)
http://www.securefact.com/blog/canadian-real-estate-industry-fintrac-watch-list.html accessed 13 May 2017
3
Government of Canada, ‘Financial Transactions and Reports Analysis Centre of Canada’ (Canada.ca, 10 April
2017) http://www.fintrac-canafe.gc.ca/intro-eng.asp accessed 12 May 2017
4
Block Geeks, ‘What is Blockchain Technology? A Step-by-Step Guide For Beginners’ (blockgeeks, September
2016) https://blockgeeks.com/guides/what-is-blockchain-technology/ accessed 30 April 2017
What we each have on our screen is not a copy but an original document that is constantly updated
across the internet. Likewise, anyone we choose to invite to collaborate with us is also working on
an original. To finish the analogy, the document that we are all working on is verified externally
by users of the network every time a change is made, thereby keeping the document up to date and
immutable. This mass collaboration ensures the data is constantly reconciled,5 but it also
practically adds a time stamp to every part of the blockchain. This means that the blockchain
cannot be controlled by any one single person, and that there is not a single point of failure.6
This is contrasted to a centralized network, where the stored data is at one central location. If we
adjust our illustration above regarding document collaboration, then this would be akin to me
working on a document and emailing it to you. You work on it and email it on to the next
collaborator, and so on. This means that there is a copy being sent around but there is only one
original. Under this centralised design, a failure of any kind such as a natural disaster, technical
failure or hacking, would result in the loss of the data. Although there may be a copy of the data
somewhere else on the network, there is no way to guarantee the authenticity of such data. This is
important because of the inherent trust issues within contractual transactions in general. The very
reason third party verification is needed, such as centralised systems, is because of the lack of trust.
This can be seen for example in banking. The reason it takes time for your bank to reconcile your
balance with what’s been spent is because it must manually verify all the movement of money
along the entire transaction. Blockchain eliminates this need for verification as well as the time
taken to do it, thereby speeding up the transaction process.
Foundationally, blockchain provides for digital information to be distributed across a network.

This is why it is often referred to as a distributed ledger. The ledger can be programmed to record
“virtually everything of value”, and therefore transferring that value to anyone is also possible.
Transactions are verified by the users throughout the network and then added to the blockchain
permanently. It this way, the transactional data provides for a complete history of anything that is
on the blockchain. As such, it records “transactions between two parties eﬃciently and in a
veriﬁable and permanent way” and also it can trigger transactions automatically. 7
FINTRAC
FINTRAC is Canada’s financial intelligence unit, and their mandate is to “facilitate the detection,
prevention and deterrence of money laundering and the financing of terrorist activities”.8 In
relation to real estate, FINTRAC requires reporting entities, including brokers and agents to report
any transactions that may reasonably be thought to be related to the commission or attempted
commission of a money laundering or terrorist financing offence.9 This can include any type of
suspicious transaction in general, or a transaction that involves property known to be owned or
5
Don Tapscott, ‘SXSW Preview: What’s the Next Generation Internet? Surprise: It’s all about the Blockchain!’
(LinkedIn, 12 March 2015) https://www.linkedin.com/pulse/whats-next-generation-internet-surprise-its-all-don-
tapscott accessed 30 April 2017
6
7
Marco Iansiti and Karim R. Lakhani, ‘The Truth About Blockchain’ [2017] The Harvard Business Review,
January-February (pp.118–127)
8
Government of Canada, ‘Financial Transactions and Reports Analysis Centre of Canada’ (Canada.ca, 10 April
2017) http://www.fintrac-canafe.gc.ca/intro-eng.asp accessed 12 May 2017
9
ibid
controlled by a terrorist group, or transactions involving large amounts of cash, typically over
$10,000. There is also a voluntary regime whereby those who are not subject to the regulations are
requested to submit a voluntary information record. This would include lawyers, notaries outside
of British Columbia’s jurisdiction, and the general public.10
The collection of the data allows FINTRAC to create financial intelligence which in turn helps in
the investigation of money laundering and/or terrorist financing activities. In this way, they are
able to discover patterns and trends within the criminal world.11 Anti-money laundering is a
difficult task in general. And the nature of it is still rooted in its antiquated policies, which are still
largely unchanged from the 1970’s.12 The approach taken in real estate is a very simple one. If you
suspect something suspicious, report it.
It is considerably important to note that these broad reporting requirements, while seemingly
straight forward, have not received their due attention according the FINTRAC office. In fact,
there is concern with the lack of suspicious activity reports submitted from within the real estate
industry. From 2003 to 2013 there were over 5 million real estate transactions but only 279
suspicious transactions reported. 13 This is particularly concerning in FINTRAC’s view as the
targeting of the real estate industry for nefarious purposes is well known. Real estate they say, is
susceptible to easy price manipulation as well as anonymity via buying, selling and financing
properties.14 This raises the question. Is the anti-money laundering regulation deficient, or is the
lack of compliance the real concern? And furthermore, what affect will blockchain have on the
regulation.
Blockchain Applied to Real Estate

Blockchain’s distributed ledger provides for secured data storage, and although that is one
significant function, it is so much more than just a data storage mechanism. The security of the
stored data is only the genesis of its revolutionary design, but it is why there are so many possible
applications. Blockchain in real estate represents a complete paradigm shift from the traditional
way of doing things. It completely shakes up the power dynamic of centralized systems such as
those found in the real estate industry. The trust is taken from gate-keepers and distributed across
the network, fully accessible by the public and providing full transparency.15
Transparency is viewed mainly as a positive for the real estate industry by some, allowing for a
more level playing field. If we consider that in most cases, the Realtor is a gate-keeper in many
ways. Therefore a prospective purchaser must access necessary data such as title registration or
10
Government of Canada, ‘Operational brief: Indicators of money laundering in financial transactions related to real
estate’ (Canada.ca, 14 November 2016) http://www.fintrac-canafe.gc.ca/publications/operation/real-eng.asp
11
ibid
12
Kristofer Readling and Justin Schardin, ‘Why Blockchain Could Bolster Anti-Money Laundering Efforts’
(Bipartisan Policy Center, 2 June 2016) https://bipartisanpolicy.org/blog/blockchain-anti-money-laundering/
13
Securefact, ‘Canadian Real Estate Industry on FINTRAC Watch List’ (Securefact, 30 November 2016)
http://www.securefact.com/blog/canadian-real-estate-industry-fintrac-watch-list.html accessed 13 May 2017
14
ibid
15
Deloitte, ‘Blockchain: the next game changer in real estate?’ (Deloitte, 3 March 2016)
https://www2.deloitte.com/nl/nl/pages/real-estate/articles/blockchain-the-next-game-changer-in-real-estate.html
price information by way of liaising with an agent. Likewise, the centralised land title registry is
not easily accessible by everyone. Of course the information is available for a fee. This supports
the idea of limited access controlled by the few. So if I am interested in a property then, I am
limited as to how I can access information about that property. To put it another way, I am hindered
by the centralised nature of the system because I can’t do it on my own, and am therefore forced
to use the mechanisms that are in place.
Conversely, blockchain makes it so all the data and historical information about the property is
available to anyone. In this way, it is seen as a democratising force since anyone can participate in
its use. There are no governmental entities or central banks that control a person’s data. Thus, it is
no longer necessary to rely on the state to administer property rights to prove an individual citizens’
ownership.16 Moreover, an average person anywhere in the world can now participate in real estate
investment, even in countries where there is a lack of investment security. 17 This is because
security in ownership is based in the blockchain itself and not with any centralized database. Recall
that once the title registration is verified and entered into the blockchain, it is virtually
incorruptible. This also is seen as helping to reduce fraud. No longer can there be a forged paper
document that does not match the digital version, as it is easy enough to access the immutable
digital data to refute any paper alternative. In that way blockchain provides an “indelible digital
paper trail”.18
This paper trail is a significant benefit for the FINTRAC regime, which in my view currently does
far less prevention than it does detection. What I mean is that the anti-money laundering system is
retroactive in nature. It may not have been designed this way, but critics argue that “anti-money
laundering (AML) rules and regulations are outdated and pretty much ineffective.” 19 The basic
system of investigation is firstly to detect a suspicious activity, and then to investigate those
involved. Whether this system is good or bad is not for me to say. Rather I just emphasise the
reality of the type of work that is attempted. The reporting requirements appear straight forward
enough, but I propose that a closer look may give us a glimpse into how difficult anti-money
laundering investigations can be in real estate. After all, there is no investigation without a
submitted report.
Consider first the pressure on reporting entities. Here I will only ponder the real estate agent. The
large list of compliance guidelines that agents must use is intended to help them recognise and
assess what is suspicious in a real estate transaction. But there are 39 possible indicators in one
table alone as stipulated in the FINTRAC operational brief.20 This is an extensive list and I would
16
Edward D. Baker, ‘Trustless Property Systems and Anarchy: How Trustless Transfer Technology will shape the
Future of Property Exchange’ [2015-2016] 45 Sw. L. Rev. 351, 353
17
Victor Franz and Paul Weber, ‘The Disruptive Power of Blockchain’ (RealtorMag, October 2016)
http://realtormag.realtor.org/technology/feature/article/2016/10/disruptive-power-blockchain accessed 16 May 2017
18
On the market blog, ‘How BlockChain may solve fraud in Real Estate property industry’ (Onthemarketblog, 29
December 2015) https://onthemarketblog.blogspot.nl/2015/12/how-blockchain-may-solve-fraud-in-real.html
19
Samee Zafar, ‘Can Blockchain Prevent Money Laundering?’, (Finextra, 29 September 2016)
https://www.finextra.com/blogposting/13186/can-blockchain-prevent-money-laundering accessed 12 May 2017
20
Government of Canada, ‘Operational brief: Indicators of money laundering in financial transactions related to real
estate’ (Canada.ca, 14 November 2016) http://www.fintrac-canafe.gc.ca/publications/operation/real-eng.asp
argue that many of them are vague, allowing for subjective interpretation. This is interesting when
contemplated against the lack of reports given to FINTRAC as already indicated. The question
that follows then is whether the lack of reporting is due to lower levels of criminal activity, due to
agents not recognising the suspicious activity or just choosing not to report it. I suggest that it is
not a case of decreased criminal activity. There is evidence that money laundering is on the rise.
Global money laundering flows are estimated to be 5% of global GDP.21 It is more likely that
either an agent did not recognise the nature of the suspicious activity out of ignorance to the
previously mentioned indicators, or that they willfully chose not to report or were indeed complicit
in the activity.
Furthermore, recall that transparency provided by the blockchain means that the data is now
democratic. This means that it’s available for everyone. It necessarily follows then that the gate-
keepers, or those who previously controlled access to data, and therefore controlled the entire real
estate transaction, are needed less. This creates an interesting situation that affects FINTRAC
reporting. Put simply, if there is no one monitoring the entire transactional flow of data, it
necessarily follows that there can be no one to witness the suspicious activity, and therefore no
one to submit the necessary reports. This in my opinion has the potential to inflate an already
challenged regulatory regime, and potentially could undermine the entire anti-money laundering
process. So we premise the nature of anti-money laundering regulations on the basis that they are
outdated and ineffective. It can be shown that most illegal money flows still go undetected through
the current rules and regulations.22 In money laundering overall, less than 1% of the global volume
is actually detected.23 Conflated with the lack of reporting of suspicious activity, and it can be said
that there are significant challenges for FINTRAC regulation.
There is hope for investigators however. With the use of blockchain and its indelible paper trail,
auditing of records and investigations in general will be easier. Each transaction is validated by
the network, which means it is forever posted on the blockchain and fully accessible. It may be
beneficial to consider the paper trail in more depth. The paper trail is another way of explaining
the creation of the blocks which store the data, and it is done by way of generating a set of digital
keys. Both creator and beneficiary have the keys. The former is like the user’s address on the
blockchain; it’s needed to begin the transfer of the data and/or ownership. The latter is like a
password that gives access to the data stored at the first key’s location.24 The combination of using
these two keys is what creates the transaction, which subsequently is verified. There is no hiding
documents, or forging them. The immutable data does not lie and cannot be hidden. Once it is on
the blockchain, it’s permanent. Even in the event of a mistake, or a desire to refund, a transaction
cannot be deleted. It is only possible to create a new transaction that reverses the old. Both
transactions however subsequently remain forever on the history of the blockchain, ensuring that
the transactional flow can be followed, even from its genesis.
21
22
ibid
23
Securefact, ‘Is Blockchain Technology a Panacea for Today’s High Cost of AML Compliance?’ (Securefact, 13
September 2016) http://www.securefact.com/blog/blockchain-technology-panacea-today%E2%80%99s-high-cost-
aml-compliance.html accessed 14 May 2017
24
Zafar explains more about the verification process, talking about “point-to-point legitimacy”.25 He
describes that the credentials of the two transacting parties are verified as well. This is beyond just
the transaction itself being verified. The persons(s) holding the keys are given a digital certificate
that can be checked for authenticity. This can be done quickly and efficiently by the authorities,
saving vast amounts of time.26 This supports the Know-Your-Customer (KYC) processes, which
in turn assists with the prevention and deterrence of money-laundering. From this perspective, the
transparency of the blockchain provides a very good searchable record as well as provides
verifiable customer information. Both are indispensable to the application of anti-money
laundering protocols. If FINTRAC cannot prevent money laundering outright, it can at least find
the perpetrators after the fact.
It is worth noting however that blockchain will not be able to prevent a true fraud in the case of
digital certificates. Verifying an individual can only be as successful as the identification allows.
What I mean is that if someone uses fake identification when creating the digital certificate, then
what is actually created, while being verifiable, is simply inaccurate.27 This is what allows for
people to transact online while keeping their true identity a secret. This carries through from a real
estate perspective as well. An outright fraud can rarely be prevented, especially when there is a
will to deceive. Blockchain only helps by ensuring transparency of the process, thereby allowing
for a thorough investigation once the transgression has been discovered. This brings us to an
important corollary to transparency, that of anonymity.
One of the features of blockchain technology is the ability to transact with complete strangers
while maintaining complete trust that the value agreed will in fact be transferred. This is illustrated
by looking at the Bitcoin currency. Under the bitcoin protocol, it is not necessary to know who
you are transacting with. The transaction is verified through the generated keys, which provide the
mathematical proof that the transaction occurred, and that it has in fact occurred between those
individuals holding the keys. Again, the keys are that which allow for the two parties to find each
other, thereby proving that they alone are involved in the transaction.
We can conceptualize this type of anonymity by thinking of buying something on the auction site
eBay. You pick a posted item for purchase and proceed to checkout. You arrange to pay the seller
whose name is a random pseudonym for his eBay store. You use your PayPal account which does
not use your real name but that of a random email. So you are sending money to someone for
something of value, but you do not know who they are. Likewise, they do not know you. How then
do you know the item will arrive as agreed? Who is enforcing the contract? The answer lies with
the third party. You have a guarantee by eBay that delivery will occur. This is the basic centralised
authority system I mentioned previously. Recall that with blockchain there is no need for third
party verification. The value transfer is guaranteed because the application of the digital keys get
verified on the network. And since the trust is in the blockchain, there is no need to have any third
party guarantees.
25
26
ibid
27
ibid
Let’s posit further the implications here for real estate. There seems to be an inevitable question
regarding the anonymity of people. If blockchain allows for buyer and seller anonymity throughout
a transaction, how can the regulatory powers of FINTRAC ensure it is fulfilling its mandate? There
seemingly would be no way of tracing through the transaction to the person responsible,
particularly in the case of a true fraud. Furthermore, 10 out of the 39 FINTRAC indicators have to
do with anonymity. This portrays just how serious the idea of anonymity is within real estate. So
much so that it would appear that as blockchain provides a vehicle for anonymity, then anti-money
laundering activity doesn’t stand a chance. But this is not necessarily the case.
The reality is that any transaction recorded in the blockchain does not come with blanket
anonymity automatically, but rather there is an ability to transact under a pseudonym. These are
two very different things. Recall the discussion above regarding transparency. You do have the
ability to be unknown throughout a transaction, but that ability is not a guarantee for criminals that
they will be able to hide from the law with impunity. Remember that the transaction is traceable
at all stages, direct to the person who used the digital keys. This may seem contrary to my previous
statements regarding anonymity, because indeed it is possible for it to be achieved, as perhaps in
the case of a true fraud. But the system can be created to allow for it, or disallow it. Put another
way, the blockchain technology has flexibility, which gives FINTRAC some hope. As such, it is
possible for regulators to customise the networks to their advantage. This invites some discussion
regarding the tension between regulators and innovators.
Anonymity may bring about significant difficulties for FINTRAC regulations,28 but Baker points
out there are advocates of crypto systems who welcome it. In fact, they find it the “most attractive
feature”29 of the technology. If you remember my eBay example above, you were able to buy
something online without the seller knowing who you were. It is blatantly obvious where the
conflict will arise from a real estate perspective. Of course regulators do not like anonymity, or
even pseudonimity, as this just makes their job more difficult. But we must consider that those
advocating for it are likely those responsible for the advancement of the technology. And “it is
imperative that policy makers do not stifle potentially transformative innovations.”30 It is therefore
necessary to strike a balance that provides industry safety as well as fosters more innovation.
Tension between regulators and innovators is not a new phenomenon. Baker calls this tension a
struggle between the “social structure of secrecy, trust and power.”31 In the case of blockchain,
which is foundationally cryptographic in nature, there is significant benefit for the privacy it
provides. But for those who would use this digital secrecy for criminal enterprises, it seems to
allow them to frustrate the efforts of regulators like FINTRAC. The answer however cannot be
cart Blanche heightened regulation. On the other hand it likewise cannot be complete de-
regulation, which would be neither realistic nor desirable according to Kiviat.32 So over time what
28
29
ibid
30
Clay Lowery, ‘Unintended Consequences of Anti–Money Laundering Policies for Poor Countries: A CGD
Working Group Report’ (Center for Global Development, 2015) 67
31
32
Trevor Kiviat, ‘Beyond Bitcoin: Issues in Regulating Blockchain Transactions’ [2015] 65 Duke Law Journal 569,
589
happens as the technology advances is like a cat and mouse game between these two competing
interests, or as Baker puts it, it’s a “perpetual whack-a-mole scenario” between law enforcement
and criminals.33 This is likely unavoidable but also a good thing in my view. The ability to assess
the advancements slowly so as to ensure the balance between regulation and innovation is struck
is not only wise but realistic. In this way, sufficient checks can be put in place only when the need
arises, and with precision. And since blockchain is programmable, precision can be accomplished
with the help of conditional “smart” contracts.34
Smart contracts are simply "computer programs that can automatically execute the terms of a
contract.”35 The significance of this cannot be understated since it may be the most “transformative
blockchain application at the moment.”36 We can think of smart contracts in terms of a vending
machine. This concept was first introduced by Nick Szabo, whereby he enunciated that a vending
machine only releases the chosen item after the correct amount of money is deposited.37 Of course
this is a simple analogy, but it shows the ability for a transaction to occur without human
verification. When the pre-conditions are met (money deposited), the contract is automatically
executed (item released). Furthermore, with blockchain in real estate, a contract can be customised
whereby limitless conditions can be met which will further reduce fraud.38
With respect to anonymity in real estate, recall that anonymity can be allowed or disallowed. Let’s
imagine a simple real estate example. There is a house for sale and an offer is sent from an
unknown buyer who wishes to remain anonymous and complete the purchase using a lawyer as
intermediary. FINTRAC’s table of indicators says this is a red flag, and the agent should report it.
This could be avoided however by making verified buyer identification a condition of the sale.
This means that transfer would not occur until the buyer is identified. While this can be done
without the use of blockchain, it will cost more money, more human capital and more time than
with blockchain. Just think of the costly coordination effort needed for verified identification.
Blockchain short-circuits this process. By making identification part of the digital contractual
terms, the contract can be executed expediently and without added cost to verify the buyer’s
identity. Just like the vending machine, once identification is added to the blockchain, the contract
can move forward automatically, no other verification needed.
In real estate transactions, verification has always been an essential step because real estate
transactions are really about trust. A buyer is trusting that once the money is paid the seller will
transfer title. Lack of trust is demonstrated by the use of escrow accounts, real estate agents and
lawyers. Historically, there is built-in verification and enforcement mechanisms to ensure the
33
34
Trevor Kiviat, ‘Beyond Bitcoin: Issues in Regulating Blockchain Transactions’ [2015] 65 Duke Law Journal 569,
574
35
Future of Property Exchange’ [2015-2016] 45 Sw. L. Rev. 351
36
37
Ragnar Lifthrasir, ‘What Is Blockchain and How Does It Apply To Real Estate?’ (Realcomm, 29 March 2016)
https://www.realcomm.com/advisory/738/1/what-is-blockchain-and-how-does-it-apply-to-real-estate accessed 2
May 2017
38
Aanchal Anand, Matthew McKibbin, Frank Pichel, ‘Colored Coins: Bitcoin, Blockchain, and Land
Administration’, Scaling up Responsible Land Governance: Annual World Bank Conference on Land and Poverty
(March 2016)
transaction is properly executed. Property owners likewise can only assert their property rights by
way of putting trust in a third party mechanism like the title registry. Without the central database
confirming they are the owner, proof of ownership could be very difficult to show in the event of
a dispute. Property owners have always relied on a third party source to maintain the title records
for their homes. With blockchain, this would no longer be necessary. The records are distributed
globally and immutable, and therefore any attempted alterations to the blockchain data become
part of the data itself, making third-party hacks immediately obvious.39 Disputed title would no
longer be possible, and reliance is not needed on the title registry.
Conclusions
Blockchain has many purported benefits, and it is widely expected to fundamentally alter the way
the real estate industry operates. Furthermore, it is not considered to be just a disruptive
technology, rather it has been called a foundational technology, meaning it will completely change
how economic and social systems operate.40 In this paper I have endeavored to explore the
application of blockchain within the real estate industry with an aim to measure its implications to
FINTRAC policy. Although there was insufficient time to explore all of its benefits, I gave a brief
overview of blockchain and FINTRAC regulation which gave us a sense of how big this innovation
is. This advanced our discussion regarding the application of blockchain in real estate, and how it
may affect those purposed with fighting criminals who would use real estate to launder there illicit
money.
My conclusion is that blockchain is immensely beneficial for the real estate industry. And
FINTRAC can benefit from its use despite there being concerns about anonymity. Anonymity,
while a challenge, is not unsurpassable in my opinion. It can be dealt with by way of contract
customising. I have shown that anti-money laundering activities in general are retroactive in
nature. Investigations only come after suspicious activity is detected and reported. As such, there
is little FINTRAC is doing to deter those wishing to engage in nefarious acts. Nor is there much it
can do in this regard, with or without blockchain. Therefore the benefits to the real estate industry
should outweigh any concerns to FINTRAC. Blockchain does not alter significantly the FINTRAC
protocols either. Detect and report remains their focus. What blockchain does add however, is the
distributed ledger, which provides a digital trail for investigators.
FINTRAC policy regarding blockchain is largely unknown. The reality is that it will take time to
fully implement such a foundational technology, and therefore it cannot be known how to prepare.
The technology must be given the opportunity to grow without stifling it by way of regulation. It
remains to be seen whether regulators will adopt this perspective however. While it is beneficial
to deprive criminals of their profits, it would be a shame to see the democratisation of the real
estate industry stamped out in their pursuit.
39
Jamie Carter, ‘Bitcoin vs distributed ledger vs Ethereum vs blockchain’ (techradar, 13 September 2016)
http://www.techradar.com/news/internet/bitcoin-vs-distributed-ledger-vs-ethereum-vs-blockchain-1328432 accessed
15 May 2017
40

Blockchain in Real Estate, FINTRAC

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Blockchain in Real Estate, FINTRAC

Transféré par

Droits d'auteur :

Formats disponibles

Regulating Blockchain in Real Estate: Implications to the Role of

Foundationally, blockchain provides for digital information to be distributed across a network.

Blockchain Applied to Real Estate

Vous aimerez peut-être aussi