- Governments in Europe and Asia are also expanding their regulatory oversight.
- Kraken had its staking programme recently curtailed by the SEC.
Regulation authorities in Canada are preparing to impose tighter laws for exchanges in the nation, only days after the U.S. Securities and Exchange Commission (SEC) imposed limitations on crypto-related activity. The Canadian Securities Administrators (CSA) are said to be drafting new regulations. That cryptocurrency exchanges operating in Canada will have to adhere to.
This development occurs when governments in Europe and Asia expand their regulatory oversight. Contrarily, the crypto market is being supported by Bitcoin’s (BTC) price increase, which has reached its highest level in around eight months.
Following U.S Footsteps
Kraken, a cryptocurrency exchange, had its staking programme recently curtailed by the SEC. Kraken was accused of providing the staking service for the fact that the assets were being distributed without proper registration. Because of this, the exchange had to end US operations and pay a $30 million fee to resolve the case.
In light of recent developments, it seems that the proposed regulations would make it prohibitively costly for cryptocurrency exchanges to operate in Canada, thereby inhibiting the sector while also safeguarding user assets through high taxes and stricter laws. According to the reports, the plans had been in the works before 2022; the FTX crash had only served as a stimulus for speedier execution. Details of the new regulations are anticipated to be announced by Canadian authorities soon.
As the US SEC suggested harsher restrictions for organizations that safeguard assets for fund managers, which impact crypto exchanges operating in the US, Canada may attempt to create an atmosphere comparable to that in the US. So, if Canada adopts a comparable legislative structure, it may encourage the crypto industry to relocate outside of North America.
