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Canada’s Ontario Tightens its grip on Cryptocurrency market

Canada’s Ontario Tightens its grip on Cryptocurrency market
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Written by Joel Degan

The Ontario Securities Commission (OSC) appears to be a latecomer in tightening the grip on the cryptocurrency market. The regulator has started to tighten the belt following the receipt of a number of complaints on the question of trading platforms for digital currencies. As a result, there could be a conflict with those buying and selling of virtual currencies and the exchanges dealing with it. Already, South Korea, Japan, China and the SEC of the United States have taken steps to tighten their grip on the cryptocurrency due to higher volatility.

Getting Information

OSC spokesperson, Kristen Rose, told the media that they were conscious of the number of trading platforms in respect of digital currencies that are operating from the origin. The regulator is keenly involved in getting more information on their businesses. However, one thing was clear from the spokesperson’s statement, i.e., none of the trading platforms were recognized as an exchange legally. But some of them were given exemption from the registration. It is compulsory for any exchange to register in Canada to carry the business.

Rose has reiterated the position of btcmanager, “Exchange marketplaces are required to adhere to the governing exchanges or other trading systems. Since crypto platforms offer trading options, they are classified as a marketplace.” His comments come on the back of increasing initial coin offerings (ICOs) launching fresh tokens. As a result, there was a significant growth in the exchanges to trade such virtual currencies.

Obviously, OSC is worried about the unregulated businesses growth. Therefore, the regulator opted to take more efforts to bring the cryptocurrency trading under the strict regulations. This would be done through the launch of specific regulations. The market watcher believes that such regulations would only help to expand businesses in future. The regulator is fully aware as to how the virtual currencies are shaping up the market for start-ups and individuals.

The OSC does not want to hear the nuances of any scams in the cryptocurrency market due to unregulated businesses in this space. For this, the regulators are working on the exchanges’ business models and initial coin offerings (ICOs) to prevent any big losses to investors. Incidentally, most of the digital currencies have lost over 50 percent of their value since hitting the lifetime high towards the December end last year.

Crackdown On US

As far as the neighboring United States are concerned, the Securities and Exchange Commission (SEC) has already initiated a number of steps to regulate the digital currency market. The SEC has also been enquiring into the role played by exchanges and the ICOs. The regulator has already cracked down on several such businesses. Therefore, the OSC should have taken note of its neighbor in regulating the market much ahead.

The SEC has found Bit Funder of committing frauds in February last. The regulator believes that it was necessary to register any type of assets including digital and focused itself on addressing the flaws faced by investors. Japan has already lost more than $500 billion during a theft in January end while South Korea has witnessed money laundering-type activities. Therefore, most of the countries are showing more interest to put the market in the right perspective.

About the author

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Joel Degan

Joel is an entrepreneur specialized in the international business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business. He is currently working on decentralized autonomous organization (DAO) along with TokenDesks.