Canada Delays Regulation of Cryptocurrencies and Blockchain Companies

Bitcoin Magazine | Jessie Willms | Aug 28, 2018

Canada delays regulation on crypto - Canada Delays Regulation of Cryptocurrencies and Blockchain CompaniesThe Canadian government has postponed the release of its final regulations for cryptocurrency and blockchain companies. The final published regulations were due this fall, but the government now says they won’t be published in the Canada Gazette until late 2019.

Because the federal government is already in pre-election mode ahead of the 2019 election, the final cryptocurrency or “virtual currency” regulations have effectively been put on hold, leaving the current regulatory regime in place until well into 2020, as there is an additional 12-month period after publication for any new regulations to take effect.

Some companies in the space see this as a positive for the industry’s competitiveness as the government is effectively backing away from the stricter rules proposed in the draft version published in June 2018.

Others are concerned that this delay will harm their competitive position in the quickly growing international crypto market, where countries like Switzerland and Malta are actively encouraging crypto businesses with few regulations and a favorable tax regime.

See:  Why blockchain technology is flourishing in Metro Vancouver—and how it will change your life

The Blockchain Association of Canada (BAC) told Bitcoin Magazine that it appreciates that the government is proceeding with caution, in recognition of the complexities of this new, evolving sector.

“The decision to delay the proposed regulations bodes well for the Canadian blockchain and cryptocurrency space. The government is committed to an innovation agenda and sometimes … it may be best to observe and intervene as little as possible,” said BAC Executive Director Kyle Kemper.

Large Volume of Submissions From the Crypto Sector

According to a number of participants, the sheer volume and quality of the comments and responses by the industry to the proposed regulatory package likely contributed to the government's decision to hold off on publishing until next year.

Cryptocurrencies and blockchain companies and organizations, like the Money Services Business Association, were invited to submit comments and attend meetings with Finance Canada officials.

BRI Calls for a Central Regulatory Body Comparable to the SEC

One set of comments submitted to the federal finance department included a report from the influential Toronto-based Blockchain Research Institute (BRI).

The BRI assembled a round table of 70 participants from the industry and submitted a report with carefully thought out, detailed recommendations.

The report says there’s substantive regulatory work that needs to be done to create certainty and build a competitive industry, although the participants called for a middle ground, saying:

“... as the blockchain revolution unfolds, regulators would be wise to avoid the chainsaw when microsurgery could do. To be sure, we do not want the Wild West.”

The BRI report points out that Canada is the only developed federal democracy that does not have a securities regulatory authority at the federal government level and recommends creating a central regulatory body at the federal level like the U.S. Securities and Exchange Commission (SEC).

See:  Don Tapscott urges ‘sensible’ cryptocurrency regulations

Instead, “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.”

“This model was set up to oversee a much simpler world where there were actual traders on stock exchange floors, and where the pace of innovation in capital markets was glacial and regionally confined,” adds the report.

Continuing Uncertainty in the Crypto Sector

Coinsquare Exchange CEO Cole Diamond, as a member of the BRI’s Advisory Committee, made the case for more regulatory clarity. He told Bitcoin Magazine:

“I don’t think that delaying regulatory clarity is a good thing. At the same time, I understand how complex this market is. The regulators are still learning, and I can assure everyone that they are trying.”

“My hat goes off to the OSC Launchpad, the Ministry of Finance and others for their focus on the market. We look forward to continuing to work with them to bring about opportunities for Canadian businesses to lead globally in this exciting space.”

Evan Thomas, a Toronto-based lawyer working with crypto startups on regulations and compliance, also thinks that there needs to be some serious work done on regulating cryptocurrencies and blockchain companies.

See: 

Thomas told Bitcoin Magazine:

“Delay can put Canadian businesses at a competitive disadvantage. Other jurisdictions are moving more quickly to establish regulatory frameworks around crypto, to the extent those frameworks don't already exist.

“Until the regulations are final, it will be challenging for Canadian crypto businesses to establish critical banking and other relationships because many financial sector players are waiting for a regulatory framework to be in place. The longer the delay, the harder it may be for the industry to grow in the meantime.”

Continue to the full article --> here


NCFA Jan 2018 resize - Canada Delays Regulation of Cryptocurrencies and Blockchain CompaniesThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Latest news - Canada Delays Regulation of Cryptocurrencies and Blockchain CompaniesFF Logo 400 v3 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companiescommunity social impact - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies

BIS | Agustín Carstens | Nov 14, 2019 Keynote speech by Mr Agustín Carstens, General Manager of the BIS, at the 55th SEACEN Governors' Conference and High-level Seminar on "Data and technology: embracing innovation", Singapore, 14 November 2019. Introduction It is a great honour to address this distinguished audience today. We meet against the backdrop of the Singapore Fintech Festival and the opening, here in Singapore, of one of the first three BIS Innovation Hub Centres. Singapore has positioned itself as a centre of innovation, research and development at the heart of the world's most dynamic economic region.1 The impressive achievements in fintech relate in no small part to the work of the Monetary Authority of Singapore (MAS) and Singaporean authorities in creating a solid public infrastructure to foster innovation. This morning, I will discuss the role of personal data in digital financial innovation. The use of new technology with such data holds great promise, but it also presents new and complex policy trade-offs, and a clear need for domestic and international policy coordination. I would also like to share some thoughts on how the work of the BIS can contribute to this debate. The value of personal data Personal ...
Read More
BIS Agustín Carstens - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Canadian Securities Administrators | Nov 12, 2019 Montreal and Singapore - Members of the Canadian Securities Administrators (CSA) have signed a fintech co-operation agreement with the Monetary Authority of Singapore (MAS). The members are the securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Québec and Saskatchewan. The agreement extends the work of the CSA Regulatory Sandbox Initiative and the MAS Fintech and Innovation Group. Notably, it includes a referral mechanism for innovative businesses, and will enhance and clearly define information-sharing between these jurisdictions. “This agreement with MAS will allow innovative businesses in Canada and Singapore access to new regulated markets,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “Flexible regulatory environments with appropriate investor protection measures are best-placed to support the rapidly growing fintech industry.” “Singapore and Canada are no strangers in fintech collaboration. MAS and Bank of Canada had collaborated on a project to explore cross-border payments transactions on blockchain. This co-operation agreement will strengthen our co-operation between the 2 countries, specifically in developing innovative solutions for the securities sector,” said Sopnendu Mohanty, Chief FinTech Officer, MAS. The co-operation agreement exchange ceremony was held at the Canadian Pavilion ...
Read More
CSA enter - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Finextra | Nov 6, 2019 Non-banks now account for a quarter of the institutions offering payment services or payment instruments, up from 14% in only six years, according to a fresh batch of statistics from the Bank for International Settlements. The data comes from the Basle-based BIS's annual Red Book report on payments and financial infrastructures. It reveals increasing incursions by non-bank competitors into both retail and wholesale payments. "The traditional bank-based ecosystem is being disrupted from below by fintechs and from above by well established big techs," states the report. "When asked which financial products and services are most affected by technological developments and competition, banks often rank payments the highest - both today and over the next five years." Non-bank providers now account for 10% of direct participants in RTGS systems in jursidictions covered by the BIS-convened Committee on Payments and Market Infrastructures. In contrast, non-banks accounted for only four percent in 2012. The payments landscape continues to morph, says the BIS: "Driven by innovation and shifts in consumer preferences, new systems, new methods and new players are shaping the future of payments." The report also checks in on the drive towards a cashless society. It finds the ...
Read More
changing landscape payments - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
CNBC | Jeff Cox | Nov 13, 2019 Key Points Google plans to offer checking accounts next year. The project, code-named Cache, will be run in conjunction with Citigroup and the Stanford Federal Credit Union. Google will offer checking accounts next year, according to a source familiar with the company’s plans, representing Big Tech’s boldest move yet into the consumer banking business. Most previous efforts have focused on credit cards and payment platforms. The accounts for the project will be run by Citigroup and the Stanford Federal Credit Union, the source said, confirming a report in The Wall Street Journal. As part of a project code-named Cache, the company will become the latest Silicon Valley leader to try its hand at the banking space. Previous attempts by Apple and Facebook faced obstacles, with consumers growing increasingly skeptical over providing large technology companies with their personal information. Google does not intend to sell customers’ data, Caesar Sengupta, an executive at the firm, told the Journal. “If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us,” Sengupta said. For years, banks had been concerned about competition from small, nimble ...
Read More
big tech unable to self regulate - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
11fs Pulse | Joanne Kumire | Aug 27, 2019 Introduction to Open Banking in the UK The first step towards banking automation came in 1967 following the installation of an ATM in the UK. Over 50 years later, Open Banking arrived, ushering in a new era of digital banking, which ironically is lessening the need for ATMs. It is no secret that the financial industry was in dire need of a makeover, I mean except for a few bankers (if that), no-one really understood how most of banking worked even though it plays an integral role in our everyday lives. The 2008 global financial crisis was evidence of that and this disaster led to a review of regulations, from which Open Banking – the first enactment of PSD2 – was birthed. Since January 2018, we have heard a lot about Open Banking, the regulation that has released the financial data of consumers from the banks’ ownership and into the hands of consumers. That means regulated banks in the UK are now required to let customers share their transaction data such as spending habits and regular payments with authorised third-party providers (TPPs) offering other services – as long as the customer ...
Read More
open banking 2 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Artemis | Steve Evans | Nov 7, 2019 A blockchain based parametric weather insurance product has made its first payouts, after severe weather impacted smallholder farmers covered by the product in Sri Lanka. The parametric insurance was launched in a pilot phase a year ago, as Oxfam in Sri Lanka teamed up with insurance and reinsurance broker Aon and insurtech blockchain solutions provider Etherisc, alongside local insurer Sanasa, to deliver a responsive risk transfer solution that could be rolled out affordably in developing regions, with the goal of making automated payouts to smallholder farmers when extreme weather conditions occurred. The pilot launched with around 200 farmers enrolled that were exposed to the risk of losing their crops due to extreme weather. After the first year, the system has made some pay-outs to farmers in this initial operations phase, the parties behind the product announced. Now, the parties involved will move onto the next phase of the project as cropping season starts in November, seeking to solve any issues raised during the pilot with the goal of refining the system’s efficiency and increasing the scale the number of farmers that will benefit from the parametric microinsurance. “We are proud to have ...
Read More
blockchain use cases3 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Mylo | Ted Liu | Nov 5, 2019 Mylo Raises $10M Series A From Major Canadian Financial Institutions Montreal, November 5, 2019 – Mylo, the Montreal-based fintech, has secured $10M in financing for its app that helps Canadians automate their saving and investing. The Series A round was led by National Bank’s corporate venture capital arm, NAventures, with follow-on investment from Desjardins Capital, Ferst Capital Partners and Tactico. This brings the company’s total funding up to $14M. “Mylo’s mission has always been to help Canadians achieve their financial goals. With over 450,000 Canadians creating accounts to save and invest on our platform in only two years, we know we’re on the right track,” said Mylo Founder and CEO, Phil Barrar. “This investment from important strategic partners lets us start the next phase of our mission. Our team is focused on building innovative new products to help Canadians overcome any financial roadblocks that stand in the way of their goals.” The investment by National Bank reinforces the institution’s commitment to innovation. “We see great alignment between Mylo’s mission and our own focus on providing individuals with the digital tools they need to manage their finances,” said Igal Ohayon, Director of Venture ...
Read More
mylo - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Osgoode Professional Development York University | Nov 2019 Strictly Legal, an Osgoode Professional Development podcast, is about all things legal. Each episode, we unpack current issues affecting the legal landscape with the help of some of the industry's leading thinkers. Heated fights over intellectual property are nothing new in promising technology markets. Are we poised for a revolution in the protection of all types of IP?  The blockchain can be used to control and track the distribution of protected IP.  Imagine a world where you could easily register and claim ownership over your original creative works – from music to photos to blogs. With the use of blockchain technology, that world is not so far away. As the world reacts to the current blockchain mania, many businesses in the community are having discussions on what the future of innovation in the blockchain space looks like. This week's guest: Paul Horbal, Bereskin Parr (@horbal) BIO:  Paul Horbal is a partner with Bereskin & Parr LLP. He is a member of the firm’s Electrical & Computer Technology group and is Chair of the Financial Technology group. His practice focuses on patent, industrial design and technology law, with an emphasis on securing and leveraging ...
Read More
OsgoodePD Podcast Strictly Legal - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Reuters | Sharon Lam | Nov 8, 2019 Recession gatecrashes Hong Kong’s fintech party HONG KONG (Reuters Breakingviews) - Hong Kong’s economic travails are an unwelcome guest in the city’s fintech party. Enthusiasm for online-only banks was palpable at the Fintech Week conference. Yet months of political unrest have hit small businesses, and the added risks may delay local launches by the likes of Standard Chartered and Tencent. Attendees this week descended on Hong Kong’s Lantau Island for the financial hub’s fourth annual gathering. With appearances from top officials like Financial Secretary Paul Chan to executives at Singapore’s $14 billion Grab and other rising stars, there was plenty of buzz. Hot topics included central bank digital currencies and cross-border payments. See:  News on China cryptocurrency and more reforms Virtual banks, as these branchless outfits are known in Hong Kong, took centre stage. Earlier this year, Hong Kong authorities granted eight licenses for such firms to offer payments, deposits and other services, in a long overdue shakeup. HSBC, Bank of China Hong Kong, Hang Seng Bank and Standard Chartered account for some three-quarters of the city’s mortgages and two-thirds of retail loans. Online challengers, including a joint venture between Chinese handset ...
Read More
HK - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
TLT Solicitors | Daniel Lloyd | Sept 2019 Who is liable when AI goes wrong? Let us take the example of Tesla, whose vehicles have been involved in two similar fatal crashes since 2016. In both cases the vehicle failed to see a lorry cross its path and travelled into the lorry shearing off the top of the car, thereby causing both drivers to suffer fatal injuries. Should Tesla be liable for the crash? At what point should a driver no longer have any liability for what the car is doing? At the moment the Department of Transport in the USA adheres to the automation standards set out by the SAE which run from “level 0” (no automation) to “level 6” (full automation). It is accepted that Tesla’s Autopilot driverless software system is no more than a level 2 or 3 on this scale, both of which require the driver to remain in control of the vehicle when driving. So from a public law perspective at least, Tesla is not being held liable for the two crashes that occurred if, as appears to be the case, the drivers were not in control of the vehicles at the time they crashed ...
Read More
intellectual property and AI - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies