Cryptocurrencies, Canada proposes a regulation on the Exchange. Here are the news that could soon be applied.
Le Canadian authorities of financial regulation are considering the introduction of stricter rules for exchange of cryptocurrency operating in the country.
In particular, the CSA and the IIROC published a consultation document last Thursday, asking for an active contribution from the financial community on how to develop regulatory requirements for cryptocurrency platforms.
"The emergence of digital and cryptographic activities continues to be an area of growing interest ", stated Andrew J. Kriegler, president and CEO of the IIROC in a statement, adding that "we must adapt to innovation and provide clarity to the market on how regulatory requirements could be better adapted and applied to these unique business models, while maintaining the main objective of investor protection ".
Cryptocurrency risks
Considering the "new" features and the risks of cryptocurrencies, the regulatory authorities proposed to apply the same laws on securities, where taxable. For example, if cryptocurrencies are linked to securities and / or exchange-traded derivatives, the exchanges would become subject to the regulatory requirements on securities and / or derivatives. Most of the "tokens" have moreover involved the distribution of titles, usually as investment contracts - they then add from the regulatory authorities.
However, for the moment Canadian analysts are of the opinion that cryptocurrency platforms are of a hybrid nature, in the sense that they can perform the functions of one or more market palyres, including alternative trading systems, exchanges, negotiators , custodians and clearing agencies. Therefore, the authorities should consider the predisposition more specifically of a series of “tailored” regulatory requirements to address the risks and characteristics of cryptocurrency platforms.
Currently, none of the cryptocurrency exchanges in Canada is recognized as a regulated market management authority, nor is it authorized to do so.
