After the SEC's crypto involvement, Canada is enacting new laws.
The new legislation would make crypto exchanges in Canada expensive to operate and protect customer assets with high taxes and stronger controls.
Securities and Exchange Commission (SEC) engagement in cryptocurrency operations.
Soon after the Securities and Exchange Commission (SEC) of the United States imposed limitations on cryptocurrency-related operations, Canadian regulators plan to impose stricter guidelines for national exchanges. The Canadian Securities Administrators (CSA), according to the most recent rumours, will shortly propose a new set of regulations that crypto exchanges must abide by in order to operate within its purview. This news 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 businesses with US locations to leave the nation amid concerns about regulatory tightening. The SEC has imposed limitations on the staking programme of cryptocurrency exchange Kraken. When 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 will make it expensive for cryptocurrency exchanges to operate in Canada, effectively inhibiting the sector while also safeguarding user assets through hefty taxes and stricter regulations. The sources said that even though the plans 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 recently suggested harsher restrictions for organisations that secure 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. Therefore, a comparable regulatory environment in Canada may cause North American crypto firms to relocate.
