Just in: Canada will soon introduce stricter rules for crypto exchanges
Canada crypto news: Just days after the U.S. Securities and Exchange Commission placed restrictions on crypto-related activities, Canadian regulators are set to introduce tougher rules for exchanges within the country. According to recent reports, the Canadian Securities Administrators will soon introduce a new set rules for crypto exchanges to be able to operate within its jurisdiction. This news comes amid increased regulatory scrutiny from governments in Europe and Asia. The crypto market is also buoyed by an increase in Bitcoin (BTC), which is currently at its highest level in eight months.
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Industry players are concerned about the risk of crypto-based businesses based in the US being expelled from the country. This is in response to regulatory tightening fears. The SEC recently placed restrictions on Kraken’s crypto exchange staking program. Kraken was accused of offering the staking service, while the assets were offered to investors as unregistered securities. The exchange was forced to close down the US service and paid a $30 million settlement.
According to the latest reports, the new rules will make doing business in Canada more expensive for crypto exchanges. This will discourage the industry and protect user investments. The reports stated that although the plans had been in place since 2022, the FTX crash only facilitated their faster implementation. Canadian regulators will soon reveal more details about the new guidelines.
The new rules could be used to replicate a similar environment in Canada, after the US SEC proposed stricter rules for businesses that protect assets for fund managers. This directly impacts crypto exchanges in the US. A similar regulatory framework in Canada could encourage crypto businesses to move away from North America.
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