While Canada is not one of the biggest financial markets in the world crypto still found its way through its borders. It wasn’t too hard. After all, Bitcoin and other cryptocurrencies are digital currencies and their existence is tied to the internet and blockchain.
As a technologically advanced nation, Canada had no issues adopting digital currencies. But, after a while as a country known for its laws, regulations, and complete order, the time has come to regulate crypto too.
If you’re interested in how they plan to do it, and which steps the authorities in the Big North already took, keep reading.
How Crypto is Regulated in Canada?
It is interesting to know that Canada is one of the first countries in the world that took an interest in crypto in terms of regulations. What’s even more interesting is that they did it back in 2014.
As early adopters, Canadians already have a few things regarding digital currencies under control. They already have legislation titled Bill C-31 which is in charge of keeping under control all digital assets, exchanges, tokens, wallets, and everything related to virtual currencies. Under this bill, all crypto businesses fall under the category of money service businesses.
Present and Future of Crypto in Canada
While Canada did put a few things under control regarding crypto and the regulations serve their purpose, with a volatile asset as this one things can’t remain the same for too long. While the current situation is great, it is not without challenges.
Also, what the future holds is also hard to predict when it comes to crypto. At the moment virtual currencies are under Canadian Securities Administrators (CSA). They have oversight of everything that the crypto asset trading platforms (CTPs) are doing.
With regulation, it is easy for formidable businesses to arise and to leave the investors without a doubt of their legitimacy. With digital currencies, one of the questions that often pops out is tied to the legality of trading platforms and whether they are a scam. In Canada, these issues do not exist. At the moment there are around ten registered CTPs.
Canadians didn’t leave anything to the case as they have put regulations all around to aid both the investors and those who want to work as providers of services. This is why you will not be surprised to hear that they have put a few more bills into motion.
The arrangement with cryptocurrency dealers was achieved through CSA Staff Notice 21-327, while trading agencies are kept under control through Staff Notice 21-329. Both have made doing business easier and are promising that all future changes will be done on a set of already established rules.
This is how all CTPs know that while their work was accepted on the terms known from before they now have to be registered under CSAs supervision. The end goal of the Canadian authorities is to have clear transparency. The first move towards this was already made. In February of 2023, a CSA Staff Notice 21-332 was released.
Its goal is to bring quite more regulation in terms of crypto trading platforms such as Immediate Edge Trading and all to protect the investors. Canada is putting out new requirements with every bill and every notice. This is how they plan to keep the number of CTPs limited and to allow operational status only to those willing and able to comply.
None of these changes are done to limit crypto or ban it. Their view on stablecoin is that they see it as a part of the Canadian financial system. The goal is the control shared between the traders, exchanges, investors, and authorities.
Canada operates in the crypto domain with an eye set on the future. They possess one of the more regulated systems in this domain and are an example to other countries.
While their approach might appear as robust they have managed to keep things under control so far. The future will have more challenges but Canadian authorities have found to tackle all the obstacles so far.
The only thing expected of them is to show more willingness to cooperate with the other side to find a joint solution that could help both sides.