Canadian officials are looking to modify their securities regulations to include cryptocurrency exchanges and reduce risk to consumers, Bloomberg reported this week. According to reports, the officials are asking for feedback to help them create a ‘tailored framework’ for oversight of the industry:
The Canadian Securities Administrators, an umbrella organization of provincial and territorial regulators, is seeking comment on a tailored framework “to address the novel features and risks” of platforms that trade crypto assets. These include a potential lack of investor safeguards, conflicts of interest, a dearth of price transparency and inadequate security controls, it said.
In an interview with Bloomberg, the Ontario Securities Commission’s Launchpad deputy director Pay Chaukos cited a lack of regulatory consistency in Canada. Securities officials regulate based on which crypto assets are being traded and how exchanges operate, which has created an environment in which some platforms are regulated while others are not.
Chaukos reportedly refused to comment on whether officials were reacting to the ongoing Quadriga exchange controversy. He did, however, suggest that regulators are acting in response to industry requests for sensible regulation:
“This consultation is really directly responsive to what we’ve heard from these platforms. They’ve told us that a regulatory framework is welcome because they’re trying to build consumer confidence and expand their businesses across Canada and in some cases globally.”