Like many other countries, Canada has been wrestling with the issue of whether to regulate digital currencies and, if so, how and to what extent.

In it's February 2014 budget, the Canadian government introduced and passed amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act of 2000, aimed at digital currencies.

But after more than a year, the amendments have yet to be published and "proclaimed" before they become law, a necessary last step.

And a public consultation paper on the new financial regulations, promised for last summer, has yet to be released, causing some angst, but mostly relief in the Bitcoin community.

"The Canadian government has taken a cautious approach to regulating digital currencies," said digital currency regulations expert and Outlier CEO Amber Scott. "Instead of rushing in, they are looking at all the options and considering feedback from the Senate and the industry."

While there does not seem to be an appetite for new regulation, it's important to have a good fit with existing regulation if that's the direction that being taken, Scott said.

Senate Committee Hearings on Digital Currencies

The Canadian government asked the Senate Committee on Banking, Trade and Commerce to investigate, hear witnesses and report back on "the use of digital currencies and the potential risks, threats and advantages of these electronic forms of exchange".

One of the most exhaustive studies of bitcoin and other digital currencies will likely come when the committee releases its report in late May or early June.

Upcoming election, falling price of oil, terrorism on government's mind

At the moment, the Canadian government has a lot on its plate as it goes into election campaign mode ahead of an election expected in early fall.

Also weighing on its mind is the falling price of oil, (which has made previous economic forecasts outdated), and the ongoing war against terrorism.

Behind the scenes, however, the Department of Finance has been preparing digital currencies regulations.

"The regulations are in development and the timeline for prepublication in the Canada Gazette is unknown at this time," department official Stephanie Rubec told Bitcoin Magazine.

It has been more than one year since the regulations were announced, and the government may be in an election campaign before anything concrete is put up for consideration.

Bitcoin community testified at Senate hearings

The Senate Committee on Banking, Trade and Commerce heard from a wide range of witnesses, including digital finance experts, legal experts, academics and Bitcoin companies and advocacy groups.

Bitcoin Guru Andreas Antonopoulos was a witness, as were many of the representatives from the Bitcoin advocacy groups which included Michael Perklin and Stuart Hoegner from the Bitcoin Alliance, Jill Friedman from the Bitcoin Foundation and Guillaume Babin-Tremblay and Francis Pouliot from the Bitcoin Embassy. Other witnesses included the Bitcoin Alliance, Bitcoin Strategy Group, CAVirtex, BitAccess, and Rodger Voorhies from the Bill and Melinda Gates Foundation.

Representing the Bitcoin Foundation Canada, lawyers Jillian Friedman and Joseph Neudorfer told the senators that regulating Bitcoin was already happening with the current laws that govern fraud, money laundering and illegal purchases.