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Canada develops regulations for cryptocurrency industry

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According to Bitcoin Magazine, members of the cryptocurrency community are working with Canadian regulators to create industry-specific rules.

Last week, in conjunction with the Canadian Organization for the Regulation of the Investment Industry (IIROC), Canadian Securities Administrators (CSA) published a “New Proposed Platform” for discussion. This structure was created to adapt the existing rules in order to eliminate the risks and problems associated with cryptocurrency exchanges .

Cryptocurrency and fintech companies, as well as investors and other interested parties are invited to discuss on 22 issues. The purpose of this collegial work is to get an idea of the rules that are best suited for the cryptocurrency industry. Presumably the position should be formulated by May this year.

Most of the questions are focused on defining a cryptocurrency exchange, and what steps the government should take to introduce existing regulatory models into this new industry.

Obviously, Canadian regulators want to understand the situation from the very beginning and fill in the existing regulatory “holes”. At the same time, some experts point to an undetected connection between the cryptocurrency and the current legislation on securities.

“Trading non-securities tokens on Canadian stock exchanges is considered to be derivatives and will be subject to regulation, ” lawyer from Calgary Matt Burgoyne commented on Twitter .

The new CSA document on cryptocurrency exchanges has something to discuss. Exchanges must consider whether their interaction with users is a derivative or futures contract. ”

Lawyer Evan Thomas, who led the legal group Hoskin & Thomas, noted that one of the main problems with the document “is that from a legal point of view it is not clear whether Canadian securities regulators have the authority to regulate platforms for trading Bitcoins and other cryptoactive assets , which are not securities. ”

Publication date 03/23/2019
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