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Canadian Securities Regulators and the Investment Industry Regulatory Organization of Canada (IIROC) unveiled their guidance for crypto asset firms on Monday, March 29.
The framework will examine how existing regulations can be modified to incorporate crypto trading platforms, rather than propose a new set of rules for the crypto market.
Regulators are likely to keep a check on fairness and innovation in this budding industry while protecting capital market investors’ interests.
Meanwhile, Visa Inc (V:US or NYSE: V) announced yesterday that it will allow cryptocurrency transactions on its payment platform. The move comes amid growing mainstream acceptance of virtual currencies. Visa stock was up by 0.23 per cent in the pre-market trading on Tuesday, March 30.
Bitcoin jumped as much as 2 per cent and achieved its 24-hour high of US$ 58,353 per token on early Tuesday morning.
Let us deep dive into the latest Canadian crypto asset trading guidance:
The guidance will be a detailed initiative for crypto exchanges and application operators that could help in consolidating the industry without any third-party intermediaries that could hurt its decentralized evolution.
Crypto asset management firms may have to comply with the securities framework and integrate into the Canadian regulatory arrangement.
The latest guidance move by authorities was prompted by the unprecedented growth of crypto-asset trading in the last few years.
The Canada Securities Administrators and IIROC stated that they received around 52 comment letters in reaction to their joint consultation paper from industry stakeholders.
Cryptocurrency regulation has been a buzzing issue among regulators since 2017, when digital financial service provider Wealthsimple became the first government-regulated medium to allow cryptocurrency exchange on its platform in Canada.
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Other cryptocurrency platforms too have been seeking something on the same lines to bring their businesses into compliance. Once the final framework is floated, they should reach out to their local securities regulator to get registered. That will keep illegal platforms at bay.
The Ontario Securities Commission also released a statement that it has been notifying cryptocurrency trading enterprises that are currently providing trading facilities to persons or companies based in Ontario. The provincial securities regulator also emphasized that these crypto asset platforms must bring their businesses into compliance at the earliest or else deal with regulatory action.
