In a summary press release about the paper, the Canadian Securities Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC) said it was necessary to adapt existing laws in order to cope with the emergence of new trading platforms specializing in crypto-assets.
“This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors,” CSA Chair Louis Morisset commented in the press release. Morisset also stated:
The issues surrounding cryptocurrency’s interaction with securities rules has formed a central preoccupation for some countries’ regulators, notably the United States’ Securities and Exchange Commission (SEC).
“The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces — and, together, securities regulators are taking steps to deepen our understanding of this area,” IIROC president and CEO Andrew J. Kriegler added. Kriegler continued:
“We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”
Following the death of its CEO in December, it appeared much of the platform’s funds were inaccessible, while controversy over the events ensued. Big Four auditor EY is managing the firm’s administration.