🇨🇦 Canada’s tightening crypto regulations are causing a stir in the industry, with many firms considering a shift to more crypto-friendly jurisdictions. Here’s why…
📝 Big-ticket collapses such as FTX, Terra, and 3AC have triggered stricter rules for crypto companies. Now, crypto trading platforms (CTPs) must register with authorities.
🚫 Moreover, the rules have tightened for margin trading, re-hypothecation, and some stablecoin trades.
🔎 One of the major changes is that federally regulated pension funds now have to disclose their crypto exposure. This brings a level of transparency not seen before in the industry.
💸 The new rules demand a separation of customer assets, and have banned offering margin or leverage to users in Canada, which is likely to negatively impact the revenues of crypto exchanges.
✅ Will companies comply with new regulations and stay or exit the Canadian market entirely? Major firms like Coinbase and Kraken emphasized they would comply with regulations.
🌍 On the other hand, Paxos and dYdX have chosen to wind up their Canadian operations, indicating a potential exodus of crypto firms.
👀 But wait, all may not be as it seems! Insiders have hinted at a more supportive stance from Ottawa than what’s being publicly communicated.
🗣️ If companies exit Canada, it will likely trigger a dialogue between regulators and industry players on the applied rules and the conditions causing issues.
⏰ Only time will tell the full impact of these tighter regulations on Canada’s crypto landscape. The clock is ticking!