Bitcoin

The federal government introduced plans in the 2014 budget to change regulations in order to prevent money laundering through bitcoins. (Alexander Kirch/Shutterstock)

A bitcoin operator in Calgary says Ottawa is making a good move in tightening up the regulations around the use of the online currency. 

The federal government announced plans in the 2014 budget that look to prevent money laundering and other illegal financial activities with bitcoins.

Bitcoin is a digital currency that is stored electronically.

"You can send any amount of money you want anywhere in the world instantly. So that's very very useful for business, but if people can use that in the wrong way then we need to protect against that," said Dave Bradley, who owns Bitcoin Brains in Calgary.

Bradley says bitcoin use has exploded in the past six months and he believes other users also want some type of regulation.

"We would like some specific guidance as to what's expected because I think that's kind of the general sentiment among everyone in the legitimate bitcoin industry in Canada, because nobody wants to be involved in anything like that."