According to reports from Canada, a new cryptocurrency exchange has been granted a license and permission to operate in a North American country. Bitbuy, a Canadian and Canada-based cryptocurrency exchange, has been granted permission to provide cryptocurrency storage and trading services in Canada. Bitbuy Technologies Inc., Bitbuy’s parent company owns the company.
Bitbuy is now subject to the regulations of Canada and Ontario, where it applied for approval, as an investment dealer and exchange platform. Bitbuy filed with the Ontario Securities Commission due to Canada’s regulatory system, which lacks a federal regulatory agency (OSC). The approval was also supported by the Canadian Securities Administration (CSA).
Bitbuy announced this earlier on Wednesday when it said that it obtained the go-ahead to operate as a marketplace for crypto assets subject to Canadian regulations. Bitbuy becomes the first crypto firm in Canada to be given the status of a marketplace. Previous crypto exchanges were only licensed as brokers.
Bitbuy’s status allows it to process cryptocurrency market orders directly without relying on third-party intermediaries in other countries. According to Bitbuy, the status provides Canada with the country’s first fully homogenized crypto trading platform in a regulated setting. Bitbuy also offers a liquidity solution to facilitate large orders from a variety of investors.
Canada Wants Stricter Crypto Regulations
Canadian regulators recently increased their calls for stricter crypt regulations. They are reportedly stepping up efforts to achieve that very soon. Despite this, Canadian regulators have shown good faith in cryptos by granting approvals to bitcoin-based spot and futures exchange-traded funds (ETFs).
Fidelity Investments announced the launch of its Fidelity Advantage Bitcoin spot ETF yesterday. The Canadian Securities and Exchange Commission (SEC) approved the bitcoin spot ETF at a time when the US Securities and Exchange Commission (SEC) has rejected bitcoin spot ETFs. However, Canadian regulators may now be unable to take action against cryptocurrency exchanges as a result of this.
Last year, the CSA took steps against Kucoin and Poloniex after revealing that it considered crypto exchanges to be subject to certain laws. The CSA demanded full conformity to its regulations and enforced certain security measures. Canada has one of the strongest yet friendly regulatory policies for cryptocurrencies.
The Next Crypto Hub?
Since September when China banned cryptocurrencies, Canada has become a top target for emigrant crypto companies and miners. Canada’s crypto-friendly policies have attracted miners especially, who are willing to embrace green energy to mine bitcoin and other coins. This has helped to improve Canada’s status as a destination crypto hub.
The US is undoubtedly the biggest hub for cryptocurrencies now, given that it tops the list of countries with the most crypto investments and companies. But that could change soon if certain regulations see the light of the day.
In October, president Joe Biden signed the $1 trillion infrastructure bill into law. The law contains certain controversial demands for crypto. Experts have since warned that certain regulations may strip cryptocurrency of its basic features and may end up crippling an industry that is worth trillions of dollars.