Crypto Frontline

Cryptocurrency Regulation Delayed in Canada

Cryptocurrency Regulation Delayed in Canada

Cryptocurrency Regulation Delayed in Canada
August 30
06:11 2018

 

The latest highlights are showing that Canada will postpone the adoption of a new cryptocurrency regulatory framework until late 2019. According to bitcoinmagazine.com, due to the fact that the country is already in the pre-election season, the new set of measures for blockchain and virtual currencies had been put on hold.

We are seeing a growing turmoil around the world regarding crypto regulation and thus far the process seems to take longer than anticipated. That is why a new idea is beginning to gain serious traction in the form of self-regulation.

Companies in Canada welcome the delay

Even though the implementation of a regulatory framework could provide additional trust and stability to the industry, Canadian companies welcome the postponement by the government. That happens because some of the measures from the proposed drafts could generate a loss estimated to $60 million over 10 years.

Companies will be required to keep records of the users, inform central authorities about suspicious activities, be willing to have audited, and provide written policies and procedures. Although these measures will most likely reduce the level of scam in the industry, institutions kind of like enjoy more an environment where regulation does not put too much pressure on them,

That’s probably of the biggest concerns, and we’ve seen in a recent article how the Sentinel Protocol had developed a Google Chrome extension that flags ICO scams.

Toronto-based BRI wants a central regulator

The Blockchain Research Institute (BRI) based in Toronto had also been one of the great advocates for regulation in the industry. The institute had assembled a meeting with 70 participants from the industry and what turned out was a report with recommendations for the central government.

The BRI thinks that a central regulator, just like the Securities and Exchange Commission in the United States, will be required in order to ensure that the capital markets function efficiently. According to the report:

“Ten provinces, three territories, and the federal government all juggle responsibility for ensuring capital market functions efficiently and honestly — attempting to keep a watchful eye on issuers, investors, investment dealers and other market players.”

Despite these claims, what we know for sure is that we won’t have any regulatory changes in Canada until 2020 since a period of 12 months must pass from the point the new rules had been voted. With regulation in question across the globe, cryptocurrency investors will most likely look for other clues that could revive the market.