Is Canada poised to be a cryptocurrency leader?

canada cryptocurrency leader

With a proactive approach to regulation and a strong commitment to innovation, Canada is poised to become a magnet for international cryptocurrency investment, according to an important figure in the world of Canadian finance.

In an interview with CPA Canada, “business accelerator” Jerome Dwight said he is watching the crypto regulatory process unfold in Canada and is betting on Canada’s future as a leader in this space.

University of Calgary law professor and crypto regulation expert Ryan Clements also told the publication he thought Canada has an opportunity to get regulation right.

“We’re trying right now to find that trade-off between innovation and regulation, security and change,” Clements said.

So, will Canada become a cryptocurrency leader in the near future? It’s looking pretty promising:

  1. The Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA) seem to be on the right path:
    ● In Feb. 2021 the OSC approved the world’s first direct custody Bitcoin ETF.
    ● The OSC and CSA have also developed regulatory sandboxes to support fintech businesses: These sandboxes allow innovators to test their products, services and applications without needing to be fully compliant with traditional regulation.
  2. Canada is also the first jurisdiction in the world to define the contractual right to custodied crypto assets as a security.
  3. The regulation of crypto trading platforms has been a focus of Canadian securities regulators: they now need to apply for registration and regulation.

The regulation process is offending global actors and paving the way for Canadian innovation, according to Michael Arbus, CEO of Canadian crypto exchange Bitbuy.

“It showed, I think, the strength of what the (Canadian regulators) designed,” Arbus said in an interview with CPA Canada.

For example, some exchanges in Canada aren’t big fans of working under the confines of onerous regulation. Facing threats of enforcement action from the OSC, one of the world’s largest crypto exchanges, Binance, chose to leave Ontario instead.

With so much uncertainty in the fast-moving crypto world and other regions of the world still trying to figure things out, Canada could be seen as a regulatory safe haven for investors seeking stability.

Ready to invest in cryptocurrency? Get started with Hubkoin. The proudly Canadian cryptocurrency exchange is registered with the Financial Transactions and Reports Analysis Centre of Canada, Canada’s financial intelligence unit, for your protection.

Leave a Reply