Canada to Tighten Rules for Crypto Exchanges Following SEC’s Intervention
As the U.S. Securities and Exchange Commission (SEC) intervenes in crypto businesses, Canada is taking steps to protect investors and regulate the industry. The Canadian Securities Administrators (CSA) is reportedly set to introduce new rules for crypto exchanges operating in the country. The move comes amid increasing regulatory scrutiny from governments worldwide, including in Europe and Asia. Meanwhile, the crypto market is seeing a boost in Bitcoin (BTC) price, currently at its highest in eight months.
Kraken’s Staking Program: A Cautionary Tale for Canada
The SEC’s recent restriction on Kraken’s staking program has raised concerns about the dangers of allowing U.S.-based crypto businesses to operate freely. Kraken faced charges for offering the staking service, which involved unregistered securities, resulting in the shutdown of the service and a $30 million fine as part of a settlement. As such, the new rules in Canada are aimed at discouraging the industry and protecting user investments with high taxes and tighter regulations.
Protecting Investors and Replicating SEC’s Strict Rules
The new rules are set to be expensive for crypto exchanges, potentially triggering businesses to migrate elsewhere from North America. However, the regulations aim to protect investors and replicate a similar environment to the U.S. following the SEC’s proposal for stricter rules. The Canadian regulators are expected to provide more details shortly, but the plans have been in the works since 2022, with the FTX collapse acting as a catalyst for quicker implementation.
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