Days after the United States Securities and Exchange Commission (SEC) established limitations on cryptocurrency-related operations, Canadian officials want to impose stricter regulations for exchanges operating in the nation.
The Canadian Securities Administrators (CSA), according to the most recent rumors, will shortly propose a new set of regulations that crypto exchanges must abide by in order to operate under its purview. This revelation comes at a time when governments in Asia and Europe are expanding their regulatory authority. On the other hand, a rise in the price of Bitcoin (BTC), which is at its highest level in almost eight months, is boosting the cryptocurrency market.
This comes amid worries from industry players about the risk of allowing crypto firms with US locations to leave the nation amid concerns about regulatory tightening. The SEC has imposed limitations on the staking program of cryptocurrency exchange Kraken. While the assets were being marketed as unregistered securities, Kraken was accused of providing the staking service. As a result, the exchange was forced to terminate its US service and pay a $30 million settlement charge.
According to the most recent sources, the new regulations would make it expensive for cryptocurrency exchanges to operate in Canada, thereby inhibiting the sector while also safeguarding user assets through hefty taxes and stricter regulations. The sources said that even though the preparations had been made since 2022, the collapse of FTX had just sped up their execution. The Canadian regulators should soon provide further information on the new rules.
The US SEC has suggested harsher restrictions for organizations that safeguard assets for fund managers, which directly affect crypto exchanges operating in the US. The new laws may be intended to replicate a similar scenario in Canada. So, a comparable regulatory environment in Canada may cause North American crypto firms to relocate.
