Canada is stepping up with rules in response to the recent Securities and Exchange Commission (SEC) intervention in cryptocurrency operations.
Canada cryptocurrency news: Just days after the Securities and Exchange Commission (SEC) of the United States imposed restrictions on cryptocurrency-related activity, Canadian regulators plan to impose stricter regulations on the country’s exchanges.
The Canadian Securities Administrators (CSA), according to the most recent rumours, will shortly propose a new set of regulations that crypto exchanges must follow in order to operate within its jurisdiction.
This news comes at a time when governments in Asia and Europe are expanding their regulatory authority. On the other hand, a rise in the price of Bitcoin (BTC), which is at its highest level in almost eight months, is boosting the cryptocurrency market.
This comes amid worries from industry players about the risk of allowing crypto businesses with US locations to leave the nation amid concerns about regulatory tightening. The SEC has imposed limitations on the staking program of the cryptocurrency exchange Kraken.
It was alleged that Kraken provided a staking service when the assets were advertised as unregistered securities. As a result, the exchange was forced to terminate its US service and pay a $30 million settlement charge.
Canada Is Concerned About The US Spillover.
According to the most recent reports, the new regulations will make it expensive for cryptocurrency exchanges to operate in Canada, effectively discouraging the industry while also safeguarding user assets through hefty taxes and tighter rules.
The sources said that even though the plans had been made since 2022, the collapse of FTX had just accelerated their execution. More information regarding the new guidelines should soon be made public by Canadian regulators.
The US SEC recently proposed stricter restrictions for companies that secure assets for fund managers, which directly impact crypto exchanges operating in the US. The new rules are perhaps aimed to replicate a similar environment in Canada. Thus, a comparable regulatory environment in Canada could potentially cause North American crypto firms to migrate elsewhere.