Financial authorities in Canada are considering the development of the regulation for the cryptocurrency trading platforms in the country.
The Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada (IIROC) made public a joint consultation paper citing the need for revision of the effective rules to cover the cryptocurrency exchanges. For that purpose, the authorities asked the market players, community, traders and investors to provide feedback on this matter and comment on the reasonable requirements for these businesses.
"This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers in the summary of the paper.
Meanwhile, local cryptocurrency exchanges reportedly back the initiative to develop the regulatory environment in the crypto market since they want to secure users' confidence as well as expand their geographic presence both in the country and worldwide.
IIROC president and CEO Andrew J. Kriegler added that the financial authorities might take steps to stay in tune with the cryptocurrency segment especially seeing growing popularity and public interest in the digital and crypto assets. In this situation, it is becoming clear that the market requires accurate position regarding the rules that would cope with this segment's business patterns as well as protect investors, as he noted.
The above-mentioned regulators are open for the comments and consultations from different representatives of the crypto industry. At the same time, they propose to apply securities laws to the crypto market citing that exchange can bring "novel features that create risks to investors and Canada's capital markets."
It has been also mentioned that the crypto trading platforms can also provide additional services that may entail extra supervision.
Notably, there are no crypto exchanges in Canada that have the official status of exchange and trading service provider/dealer license.