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

NFX | Gigi Levy-Weiss | Jan 26, 2023 An overlooked key to growth: How well you transition from Founder to CEO determines how your company scales. Seed stage Founders have a hand in everything: marketing, hiring, product, sales, everything. You have to early on.  But when your startup starts to grow you can’t – and shouldn’t – keep doing it all yourself. Once you reach 30-50 people, your goal should be to build a team and mechanisms that will do “everything” so that you, the CEO, can focus on leading and managing. The deceptively simple secret: Elite CEOs build systems. Read:  Culture and Diversity Leadership: Tale of Two Doors Hiring:  Before we dive into systems, let’s get this out of the way. Don’t worry about spending too much time on hiring. Take the time you need to surround yourself with the right people[, and don't be afraid to try people out'. Wix CEO:  "I cycled for 22 people before I found Omer Shai, my CMO. I hired and moved people to different things. I fired people. It was around 22 people that they hired within about a year and a half…When I got to Omer after a few weeks, it ...
Read More
How elite CEOs really scale - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Tristram Waye for Bitvo | Jan 26, 2023 Crypto blew up, governments cracked down, regulation forthcoming?  We are now in a place where awareness has to be exercised in places where trust was once taken for granted.  And that means embracing two principles from the Middle Ages. These are caveat emptor and the fiduciary standard.  Caveat emptor:  The word caveat emptor means buyer beware in Latin. The idea is that the buyer is responsible for assessing whatever it is that they are buying. Its origins date back to the open markets of the 16th century. In developed countries, the concept has moved from buyer to seller beware. Numerous consumer protection laws have been enacted to lift the burden from the buyer and shift it to the seller.  In general, there are numerous remedies for established consumer products. See:  How Important is KYC for crypto transactions? But for speculative, largely unregulated assets like crypto, caveat emptor is still highly relevant. Keep in mind that in contrast with venture capital, crypto secondary markets are a massive benefit. As William Janeway said about venture capital, cash and control are key elements in VC. Meaning that if the project goes sideways, you can’t sell ...
Read More
Unsplash Kenny Eliason thinking - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
FIS Release | Kim Snider | Jan 24, 2023 A global study of 2,000 executives at firms across markets revealed plans to increase investment in embedded finance, environmental, social, and governance (ESG) frameworks, and decentralized finance in 2023, including cautious optimism towards cryptocurrency. Inaugural research by FIS 2023 Global Innovation Report asked c-suite and senior executives in financial services (banks, insurers, capital markets firms, and fintechs) and non-financial businesses (retail, restaurants, travel, gaming and digital content, and technology providers) globally about their key areas of financial investment in 2023. 4% of financial services firms’ executives across the globe say they will invest significantly in developing embedded finance products in 2023 as consumers demand more convenient ways to pay, bank and invest. Nearly two-thirds (61%) of all non-financial services executives told FIS it will be strategically important to have a presence in the metaverse in the next three years. See:  Deloitte 2023 Sustainability Report: Most Organizations Have Increased Investment but Tough to Move the Needle FT Partners Jan 2023 Blockchain and Crypto Market Update Report ESG is top of mind for financial services firms globally, with 60% of executives saying they are developing new ESG products and services. Nearly one-third (29%) ...
Read More
FIS investment trends research 2023 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Jan 26, 2023 The gambling industry in the United States significantly contributes to the economy, generating billions of dollars in revenue each year. From Las Vegas to Atlantic City, casinos and other legal gambling attract millions of visitors and employ thousands of people. In recent news from Casino USA, the US gambling industry has set a new quarterly record for casino revenue, reaching an all-time high. It is a significant milestone for the industry, demonstrating its resilience and continued growth despite the challenges posed by the ongoing COVID-19 pandemic. Details of the Record The US casino industry generated record-breaking revenue in the latest quarter, surpassing all previous records. The revenue generated is yet to be officially announced, but early estimates suggest it exceeds $50 billion. It represents a significant increase compared to the same quarter in the previous year and is a clear indication of the industry's resilience in the face of the ongoing pandemic. The latest quarter's revenue numbers are significantly higher compared to previous quarters. During the last quarter, the industry generated around $40 billion, indicating a growth of over 25% in the latest quarter. It is an impressive performance, especially given the ongoing uncertainty and economic challenges ...
Read More
Freepik Bodysport women holding money - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Knowledge at Wharton | Angie Basiouny | Jan 17, 2023 A new book from Wharton management professor Emilie R. Feldman offers a comprehensive primer on divestitures, which can be a financial game-changer for companies that know how to execute them correctly. Feldman, whose research focuses on corporate strategy and governance, spoke to Wharton Business Daily on SiriusXM about her book, “Divestitures: Creating Value Through Strategy, Structure, and Implementation,” which was released in December. Opportunity cost: Often the idea of focus is overlooked by executives, and this is really the missed opportunity that could be pursued in the sense that divesting, removing assets and businesses that don’t fit and might be underperforming, could free up resources to pursue better opportunities in a more focused fashion after completion of those transactions. “Managerial compensation is strongly correlated with market capitalization, so there’s a financial incentive not to divest because doing so reduces the executive’s bottom line.” See:  Bill Gates Announces $20 Billion Donation and Obligation to Return His Resources to Society 4 strategies: resolving or exiting underperforming businesses; improving focus; reconfiguring and reshaping the corporate portfolio to move into more profitable opportunities; and addressing regulatory requirements. Types of divestitures:  Sales are the most ...
Read More
Divesting - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Jan 26, 2023 Thinking of buying a home for the first time but worried about the upcoming recession? With so much economic uncertainty, it's understandable that you might be a bit hesitant to make those big purchases. But don’t worry because There are many first-time homebuyer assistance programs available that will help you make your dreams of homeownership a reality - even in the most uncertain of times. Advantages Of Homeownership During a Recession It’s no secret that recessions can be tough, but did you know that homeownership during a recession can actually work in your favor? According to the US Census Bureau, the median net worth of homeowners is $195,400 higher than that of renters. This allows homeowners to weather the storm when the economy falters better than renters who rely on fluctuating rental rates for their monthly income. Additionally, homeownership offers a number of tax benefits for homeowners, including: Tax-free interest Tax deductions for mortgage interest Tax deductions for property taxes Tax deductions for mortgage insurance premiums Tax deductions for energy-efficient home improvements But one of the most important advantages of homeownership during a recession is the potential for long-term growth. Property values may decline slightly during recessions, ...
Read More
Unsplash Joshua Mayo mortgage - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Torys via Mondaq | Brigitte Goulard, Konata Lake, Marissa Daniels, Mohammed Muraj and Robin Asgari | Jan 25, 2023 Although many were hoping for the launch of the first phase of open banking in January 2023, as initially promised in the final report of the advisory committee on open banking, this date no longer appears achievable. However, progress continues to be made on open banking, with the first phase expected to launch this year. As the open banking steering committee and working groups continue their important work to create an open banking framework in Canada, the larger financial services community is preparing to integrate open banking for businesses and ultimately for consumers. See:  Open Banking Interview with Canadian Lead Abraham Tachjian Accreditation:  there was consensus that the Australian model is preferable. The Australian model allows participants to determine the adequacy of the insurance or comparable guarantee that they require by assessing factors such as the (1) nature of products or services to be provided; (2) nature of Consumer Data Right (CDR) likely to be managed; (3) volume of CDR data held; (4) financial resources; (5) scope; (6) policy limit; (7) persons covered; and (8) exclusions. The liability working group focused ...
Read More
Unsplash Tech Daily open banking 226x150 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
OSC | Release | Jan 16, 2023 The Ontario Securities Commission (OSC) today announced a new lineup of free webinars for small and medium enterprises (SMEs). The webinars are offered through the ‘OSC SME Institute’ which helps small businesses understand and navigate the requirements of being or becoming a public company in Ontario. Overview: The new webinars provide an opportunity for issuers and their advisors to hear directly from staff with guidance to assist them in meeting their continuous disclosure reporting obligations and on various prospectus initiatives designed to reduce regulatory burden for reporting issuers. Participants will also have an opportunity to interact with staff during the Question & Answer portion of the webinar. See:  OSC Report: How Gamification Influences Retail Investors Key topics covered in the webinars will include: Non-GAAP and other financial measures disclosure Overly promotional disclosure (including greenwashing) Forward-looking information disclosure expectations Financial reporting and disclosure expectations during economic uncertainty Management Discussion and Analysis and prospectus filing common deficiencies A refresher on prospectus exemptions including new temporary exemptions. Upcoming: For full details on the webinars and to register, visit the SME Institute calendar on the OSC website. For questions related to course content and registration, please contact SMEInstitute@osc.gov.on.ca. On-demand: Archived ...
Read More
Unsplash Simon Abrams webinars 226x150 - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
NCFA Canada | Craig Asano | January 25, 2023 TORONTO, JAN 25, 2023 – The National Crowdfunding & Fintech Association of Canada (NCFA) today announced that Mahi Sall, Founder and CEO of FinXpair, has joined the Association`s growing Advisory Group to advise on the areas of fintech-bank partnerships, payments and financial inclusivity. Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focusing on fintech-bank partnerships and open banking/open finance, and an authorized financial investment broker. Leading NCFA Canada’s ongoing thought leadership series on open banking, Mahi has interviewed over the past 9 months 14 globally renowned open banking/finance expert practitioners from around the globe aggregating international and domestic perspectives to advance Canada’s open banking journey. Fluent in fintech-bank partnerships, he previously championed the multi-corporate fintech innovation platform Fintech Europe at Germany’s largest bank, and in 2021 contributed alongside 280+ CEOs & leaders at global financial institutions to an eBook on “Fast-tracking fintech innovation in a legacy ecosystem”. As part of building a view around fintech, he spoke about “Open Innovation” at the 2020 Frankfurt Digital Finance Conference, “The State & Disruption of Fintech in 2020” at the AsiaBerlin Summit in Berlin, “Fintech-Bank Partnerships: Why ...
Read More
Mahi Sall pic - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies
Costanoa | Jared Franklin | Jan 17, 2023 It’s a really exciting time in the world of insurance. As in many sectors, COVID-19 accelerated the sector’s digital transformation as many insurers stepped up to the plate and faced the unprecedented challenges the pandemic posed. Market opportunity: Insurance is BIG business, with nearly $7 trillion in gross written premiums in 2022. But what gets VCs like me even more excited: $1 trillion more of premiums should have been purchased, but weren’t. So, over the next decade, we expect consumers and companies to spend at least $80 trillion globally on insurance. That’s 40 Apple’s, the highest valued public company in the world. See:  Growing Trends: Insurtech and AI Parametric insurance:  It’s a transparent solution where the payable amount is pre-calculated, and payment is sent immediately following a triggering event. Climate change and digitization are two long-term trends that create a unique set of challenges (and opportunities) in the future. Companies must be armed with alternative approaches to traditional underwriting and coverage. Parametric insurance is flexible and precise, remaining a massive opportunity over the next decade. With parametric, a payout can take place regardless of the magnitude of physical loss, often even when ...
Read More
Parametic insurance - Canada Delays Regulation of Cryptocurrencies and Blockchain Companies

 

Leave a Reply

Your email address will not be published. Required fields are marked *

three × two =