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Representatives of Canadaâs cryptocurrency industry are urging lawmakers to provide greater clarity regarding the regulatory obligations of cryptocurrency exchanges. In response to the absence of clear guidelines, a number of Canadian virtual currency exchanges have taken it upon themselves to voluntary register and report to Canadaâs financial regulator.
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Canadian Crypto Exchanges Push for Greater Regulatory Clarity
Canadian media has reported that a number of local cryptocurrency proponents are calling for greater clarity regarding the regulatory apparatus governing the operations of virtual currency exchanges.
Joseph Weinberg of Shyft, a company providing identification verification services using blockchain technology, has argued that exchanges have been left in the dark as to their regulatory obligations. âUntil you have regulators come out and say, âThis is what you have to do,â as an exchange, youâre kind of guessing and hoping for the best, which is a big problem,â Mr. Weinberg said.
Cole Diamond, the chief executive of Toronto-based cryptocurrency exchange, Coinsquare, stated: âWe want to be regulated because ultimately we want to be able to provide certainty to our customers that weâre not some fly-by-night trading platform, that they can trust us.â
Canadian Exchanges Adopt Self-Reporting Practices
In the face of stark regulatory uncertainty, several Canadian exchanges have taken it upon themselves voluntarily to report to the Financial Transactions and Reports Analysis Centre of Canada (Fintrac).
Mr. Diamond states that upon initially approaching Fintrac, âthey told us we shouldnât be registered there. We decided to do it anyway because we explained to them we donât have anywhere else to go. We want to be regulated.â
Despite expecting taking early steps to ensure regulatory compliance will give his exchange a competitive advantage in the long run, Mr. Diamond notes that Coinsquareâs ârevenue and trading volume could be at least five-times larger if we did not have an internal compliance regimeâ
Einstein Exchange CEO Anticipates Early Compliance Will Pay Off Long Term
Vancouver-based Einstein Exchange has also adopted a voluntary reporting regime with Fintrac, in addition to taking measures to minimize the risk of credit card occurring on its platform.
Michael Gokturk, the chief executive of Einstein Exchange, recounts that the exchange was hit with $8.3 billion USD worth of attempted fraud in a single day early into the exchangeâs acceptance of credit card payments. âOur system went nuts,â Mr. Gokturk.
Mr. Gokturk added that whilst âItâs so easy to get into this market and itâs so easy to take advantage of the lack of regulation. The best exchanges will welcome regulation and transparency and thatâs what weâre trying to do. We welcome it with open arms.â
Do you think that regulators worldwide will soon adopt clear regulatory apparatus for companies operating with cryptocurrencies? Share your thoughts in the comments section below!
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