The Canadian Crypto Landscape Is About To Change, Here’s How Investors Can Prepare
This week, we’re going to talk about something that’s been a hot topic since the emergence of Bitcoin: cryptocurrencies, specifically Bitcoin. Bitcoin has been the poster child for cryptocurrencies for a number of reasons. First, it is the first decentralized cryptocurrency, meaning that it is not controlled by anyone. It was the first to be created and has the highest market cap, followed closely by Ethereum and Litecoin. It also has the highest price movements in the market and the highest volume of trading.
Canada’s Supreme Court has ruled that cryptocurrency exchanges must register with the provinces’ securities regulatory bodies, opening the door for the country’s burgeoning cryptocurrency industry to become more mainstream. The court’s decision, coming just days after a long-awaited “Crypto2Canada” report from the country’s federal regulator, represents a major milestone in the country’s crypto history. However, this ruling could have a large impact on the Canadian economy, and investors are urged to stay informed.
The Canadian government is not concerned with Bitcoin, or other types of cryptocurrencies. This is a response to growing fears that Bitcoin and other digital currencies might end up being regulated like real money. However, there doesn’t need to be a government crackdown. Instead, there needs to be a change in regulations. This will help to foster the ecosystem that will lead to the development of Bitcoin and other cryptocurrencies in Canada.
The Cryptocurrency Landscape Is About To Shift Permanently
Canada has remained at the vanguard of the cryptocurrency industry, leading in areas such as innovation, decentralized financial infrastructure, and bitcoin acceptance.
According to Statistia, almost 32% of all Millennials hold bitcoin, a figure that is increasing year after year.
Because of the increasing popularity of cryptocurrencies, the Canadian government has decided to push the limits of innovation, resulting in a shift that will permanently alter the cryptocurrency scene in Canada.
All bitcoin trading platforms that want to operate in Canada and offer services to Canadians must comply with this change.
Investors must plan ahead to guarantee that they have full control over their cryptocurrency assets and are ready to capitalize on the possibilities that may arise.
Security, standardization, and investor protection are all aspects of regulation.
As the use of cryptocurrencies grows, both new and experienced investors want to make sure they’re safeguarded.
The government is putting in place new regulatory frameworks to guarantee that investors deal with businesses that are completely compliant, safeguard their data, and are properly insured.
Unlike the many exit scams that have plagued the sector over the years, regulation aims to safeguard and standardize security, lowering the chances of a trading platform shutting with investors’ money.
Trading Platforms are being temporarily shut off.
Exchanges who do not adhere to the regulatory framework will be forced to stop serving Canadian investors or leave the country entirely. Failure to do so will result in the Canadian government imposing very high penalties.
Unfortunately, many Canadian investors’ existing trading platforms will shut or cease to exist as a result of this. Investors should be aware that a trading platform may be forced to limit or restrict services on short notice and with a fast turnaround time.
While it is unclear how many trading platforms may temporarily or permanently shut their doors to Canadians, these cutbacks may result in banned accounts, cryptocurrency seizures, or the inability to access any investment. This has already occurred with Binance suspending business in the United States, as well as Binance declaring its closure in the province of Ontario.
Expect an increase in trading platform closures throughout the nation, leaving only those that are regulatory compliance in business.
Crypto Offerings Have Been Reduced Temporarily
While the Canadian regulatory climate transitions, investors can anticipate a temporary drop in crypto offers.
More precisely, the number of currencies accessible will be reduced as a result of regulatory compliance, which will require trading platforms to do more due diligence on currency offers.
Crypto loans, interest-bearing DeFi products, and trading products such as options or leveraged trading will also be temporarily limited until they can be accommodated within the regulatory framework.
While the legal system will ultimately adapt to accommodate these products, investors should anticipate restricted access to these products in the early days of the new regulatory environment.
Investing in Trading Platforms that are Regulatory Compliant
Investors will need to start trading using regulatory compliant platforms as a result of the wide sweeping application of regulation on the Canadian crypto environment.
Investors who want to move money to a regulatory-compliant trading platform should check to see if the platform is registered as an MSB (Money Services Business) with FINTRAC (Financial Transactions and Reports Analysis Center of Canada) and with the OSC (Ontario Securities Commission) or a similar regulatory body in their province.
While many trading platforms in Canada do not comply with regulatory requirements, Coinberry is on the verge of becoming Canada’s first fully-regulated cryptocurrency trading platform with the OSC.
Coinberry has spent the greater part of two years working with Canadian authorities to guarantee its trading platform is completely regulatory compliance and that investors are fully protected within the confines of the law, having anticipated the need for a regulated environment years ago. This implies that investors will be able to fully access their bitcoin and cryptocurrency trading capabilities on the Coinberry platform after regulatory implementation is complete in the following 2-5 months.
The Future Looks Good
The bitcoin environment in Canada is brimming with opportunity.
Canada will continue to offer a growth-friendly climate for cryptocurrency investors and inventors, as it is home to many of the industry’s top brains and some of the most cutting-edge technologies.
Canadian authorities are already ahead of the curve, but more effort will be required to guarantee that Canadian investors are protected and that new possibilities emerge.
Investors that comprehend the changing environment and the aforementioned principles will be able to continue to invest in a safe, secure, and lucrative manner.
As a cryptocurrency investor, you don’t want to miss any of the major events that could affect the price of your holdings. Apart from keeping a close eye on the price, you should be aware of the events that may affect the cryptocurrency market. One of the biggest events, in Canada and globally, is the potential legalization of cryptocurrency.. Read more about when to buy bitcoin 2021 and let us know what you think.
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