The Canadian Securities Administration (CSA) is seeking out ways to gain more information about cryptocurrency as regulations become even more important to the implementation of the asset in their economy. In their efforts, the CSA has joined up with the Investment Industry Regulatory Organization of Canada (IIROC), releasing a consultation paper together on March 14th. The goal of the paper is to get more information from the industry to determine how crypto should best be regulated within the Canadian borders.
The two national securities bodies stated that this information is crucial to adapting the financial laws to meet the needs of the new trading platforms that are arising in the name of crypto. The CSA presently covers 57 different areas, while the IIROC oversees trading platforms and investment dealers with self-regulation.
The CSA chair, Louis Morisset, said that the consultation will make it possible to develop a framework with greater “clarity for platforms,” while improving the protection over investors and the integrity of the market. He added that many platforms have sought out “tailored regulatory framework” to help them with gaining the trust of consumers, making it profitable to expand across the country and the world.
Many countries have been conflicted about the securities rules that they need to establish for the cryptocurrency sector. The United States’ Securities and Exchange Commission (SEC) has been one of the most notable in these changes, even going after exchanges for slight violations with major consequences. In comparison, Canada has taken a more reserved approach, consulting with many entities in the crypto industry, like the fintech community, investors, and other non-specific individuals.
IIROC president and CEO Andrew J. Kriegler commented that this industry has continued to grow, which makes regulation necessary. Security regulators are working to “deepen [their] understanding” of the industry. He urged that the economy needs to “adapt to innovation” and that the use of these regulations will make it easier to tailor to business models.
Canada’s lack of regulation and understanding in the industry has been popularized by the QuadrigaCX disaster, which owes users millions of dollars in missing cryptocurrency right now.