Regulators in Canada Formulating Stringent Crypto Regulations
The Canadian Securities Administrators (CSA) has revealed plans to adopt stricter crypto regulation for digital exchanges. After the FTX implosion and the collapse of high-profile crypto exchanges, Canadian market legislators prioritized amending digital laws. In 2022, regulators demanded unregistered Canadian crypto exchanges comply with the compliance commitment requirements and seek registration with the authorities.
A statement dated February 16 and co-authored by people familiar with the CSA reviewed policies revealed that the regulators would implement stricter crypto policies by March.
Tougher Crypto Regulations Launched in Canada
Last year shockers in the crypto space obliged Canadian regulators to invest in reviewing and amending the digital market regulations. The regulator aimed to safeguard Canadian investors from the ongoing market price fluctuation, cyber crimes, and liquidity crutches currently battling the crypto world.
Last August, the regulators formulated a pre-registration undertaking (PRU) that outlined the requirements for a crypto firm to operate in Canada. The February 16 report revealed that the regulators had integrated additional compliance requirements on the PRU. As per the report, the regulators confirmed to publish the complete PRU report in the future.
Impact of Changes of Crypto Laws
The February 16 CSA announcement has created mixed reactions among Canadian crypto enthusiasts. The investors argued that adopting strict crypto laws might hinder them from benefiting some public and private services.
The investors lamented that some of the Canadian regulators tasked to control some digital trading systems disabled the passport features and benefits of the system in other parts of the country.
A subsequent February 16 report by the Ontario Securities Exchange (OSE) portrays the spiking regulators’ spiking appetite to control the crypto activities in the region. The report stated that the OSE regulators plan to amend digital structure and increase the cost of operating crypto firms as deterrence to control their numbers. Afterward, the regulator’s efforts to reign in the crypto space aim at upholding compliance in the Canadian digital markets.
The report disclosed that the OSE’s recent move would affect the local and international crypto firms operating in the Canadian market.
Previously, the OSE had demanded that the leading crypto exchange Binance refrain from providing trading services to Canadians based in Ontario. Binance’s case coincides with the Coinbase noncompliance that exposed competing interests between Quebec financial regulators and Ontario’s OSC.
Global Crypto Regulations
Meanwhile, the US SEC’s ongoing crackdown on crypto firms has inspired other countries among the G-7, including UK and Canada, to implement stricter laws. The regulators in the US demanded the San Francisco-based crypto exchange Kraken cease offering unregulated crypto trading services.
Elsewhere, regulators in the UK are formulating crypto regulations to mitigate the risk associated with crypto investments. The European supervisors on crypto banking are working towards launching legislation that would expedite the integration of traditional financial systems with crypto assets.
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