The cryptocurrency industry has been experiencing a great deal of scrutiny and regulation in recent times, with different regulatory authorities across the globe providing differing opinions on how to handle cryptocurrency businesses. While some nations are welcoming cryptocurrency firms with open arms, others are imposing more stringent regulations to stymie the growth of the industry.
The recent collapse of two cryptocurrency giants, Terra and FTX, has been a cautionary tale to governments, leading to calls for more regulatory oversight. Canada has been one of the latest countries to take action, imposing more stringent regulations on cryptocurrency businesses.
The country’s securities regulators have extended the deadline for unregistered cryptocurrency exchanges currently operating in Canada to register for regulatory oversight to 30 days. To comply with the new regulations, cryptocurrency companies must make certain commitments, including more stringent guidelines for the separation of their customers’ assets. Additionally, it is now illegal for these businesses to offer their customers in Canada the option of using margin or leverage.
The new rules have led to uncertainty among cryptocurrency companies, with some exchanges such as Binance and Coinbase committing to operating in accordance with Canada’s regulatory requirements. However, other companies such as Paxos and dYdX have decided to wind down their operations in Canada.
This news comes at a time when the United States Securities and Exchange Commission (SEC) is also stepping up its monitoring of the domestic cryptocurrency industry, highlighting the increasing regulatory oversight of the global cryptocurrency industry.
In conclusion, the cryptocurrency industry is experiencing a period of intense regulatory scrutiny across the globe. With governments taking steps to control and regulate the industry, cryptocurrency businesses must navigate new regulations and commitments to ensure they can continue to operate in compliance with the law. The actions taken by Canada’s securities regulators are a clear indication of this trend and the need for cryptocurrency companies to comply with regulatory requirements.
