Cryptocurrencies have certainly taken the front stage. These assets have emerged as the talk of the town. Only this time, governments, celebrities, and the average Joe are finding ways to include crypto into their lives. Canada has just started to explore crypto waters and even hopes to witness increased adoption in the coming years.
Speaking at the Economic Club of Canada, Grant Vingoe, chief executive officer of the Ontario Securities Commission, highlighted the current stance of crypto in the region. Vingoe noted that a great majority of crypto businesses fall under the radar of the OSC. The regulator reportedly employs the regulatory basics for stocks and bonds crypto contracts as well.
While the OSC viewed assets like Bitcoin [BTC] and Ethereum [ETH] as commodities, “arrangements that trading platforms make with investors” were looked upon as securities. Vingoe said,
“As securities regulators, none of the characteristics of crypto assets or their underlying technology, either positive or negative, drives our regulatory approach.”
More often, regulators determine the legitimacy of a project through its losses and gains. The OSC chief, however, pointed out that they weren’t in it to “pick winners and losers.” He further added,
Canadian Regulators bracing for Crypto adoption?
Despite existing for more than a decade now, the crypto industry comes off as a fairly new entity to many, Governments across the globe have just begun regulating the market. It should be noted that this was mostly due to the increased adoption of crypto over the last couple of years.
The OSC chief noted that the regulator was prepping to handle more adoption in the coming years. Vingoe stated,
“We know from our own research (being published later this month) that more than 30 percent of Canadians plan to buy crypto assets in the next year […] It is a challenge to bar non-compliant firms from offering services in Canada. With a limited budget and finite Enforcement staff to cover our entire capital markets, there is only so much we can do. But we are making progress.”
With crypto adoption taking place in full spree, it has become pertinent for regulators to chalk out laws governing the market.