The CSA and IIROC say they wish to adapt rules to take into account the new cryptocurrency trading arena.
Two national securities bodies in Canada have issued a joint consultation paper on March 14, aiming to gather industry feedback about cryptocurrency token regulation.
In a summary press release about the paper, the Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) said it was necessary to adapt existing laws in order to cope with the emergence of new trading platforms specializing in crypto-assets.
The CSA is a national standards group covering 57 different areas, while the IIROC is a self-regulatory body overseeing investment dealers and trading platforms.
“This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors,” CSA Chair Louis Morisset commented in the press release. Morisset also stated:
“Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.”
As Cointelegraph continues to report, the issues surrounding cryptocurrency’s interaction with securities rules has formed a central preoccupation for some countries’ regulators, notably the United States’ Securities and Exchange Commission (SEC).
Canada has maintained a reticent stance by comparison, with the tone of the latest documentation being conspicuously pro-change as opposed to concerned about cryptocurrency market participants.
The two bodies will consult with a range of entities, including the fintech community, investors and nonspecific others.
“The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces — and, together, securities regulators are taking steps to deepen our understanding of this area,” IIROC president and CEO Andrew J. Kriegler added. Kriegler continued:
“We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”
The push for more comprehensive controls comes at a timely juncture for Canada following the debacle over local trading platform QuadrigaCX, which currently owes users around $190 million.
Following the death of its CEO in December, it appeared much of the platform’s funds were inaccessible, while controversy over the events ensued. Big Four auditor EY is managing the firm’s administration.