To review the crypto regulation in order to filter industry feedback, the Investment Industry Regulatory Organization of Canada (IIROC) & Canadian Securities Administrators (CSA) issued a joint consultation paper on March 14.
In a summary press release, the national security bodies said adapting existing laws was important for adaptation of crypto-assets trading platforms.
The CSA is a national standards group covering 57 different areas, while the IIROC is a self-regulatory body overseeing investment dealers and trading platforms.
“This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors,” CSA Chair Louis Morisset commented in the press release. Morisset also stated:
“Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.”
Canada has maintained a reticent stance by comparison, with the tone of the latest documentation being conspicuously pro-change as opposed to concerned about cryptocurrency market participants.
The two bodies will consult with a range of entities, including the fintech community, investors and nonspecific others.
“The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces — and, together, securities regulators are taking steps to deepen our understanding of this area,” IIROC president and CEO Andrew J. Kriegler added. Kriegler continued:
“We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”
The push for more comprehensive controls comes after the CEO of the Canadian crypto trading platform QuadrigaCX died leaving behind no key and clue to access the crypto funds. The platform owes users around $190 million.