It’s a story that still haunts the early generation of Canadian crypto users to this day. Four years prior, Gerald Cotten, co-founder of Canada’s then-largest cryptocurrency exchange QuadrigaCX, passed away under mystical situations in India. But, prior to his death, Cotten took virtual secrets for digital wallets and moved them into freezer, resulting in the long-term loss of $190 million in user funds.
The event set off a crisis of self-confidence in the nation’s emerging crypto sector and made regulators deeply hesitant of blockchain innovation. However, old injuries ultimately recover. Fast forward to today, and Coinsquare has actually taken control of to turn into one of Canada’s biggest crypto exchanges, with $8 billion in cumulative trading volume given that 2014.
In an interview with Cointelegraph service editor Sam Bourgi, Coinsquare chief operating offic Eric Richmond described that a regulative structure now exists to avoid comparable occurrences in the future:
“We’ve taken a much different approach than the U.S. Unlike firms south of the border, all crypto trading platforms here need to be registered with the Investment Industry Regulatory Organization of Canada (IIROC). There is a backlog with processing applications at the moment, while we had ours submitted from back in Nov. 2020 as we wanted to be one of the first regulated players out there.”
As the guideline just entered force just recently, all crypto exchanges are provided a two-year exemption where they should sign up with the IIROC throughout this duration. Currently, Coinsquare is the just company in the area that is IIROCregistered. Similarly, the business has a rigorous set of guidelines in location when it concerns noting brand-new tokens to guarantee its users do not come down with rip-offs:
“We put it through examining the underlying innovation, the marketing, the group behind it, evaluating possible legal concerns, irregular cost motions, and so on. We go through his in-depth analysis throughout various groups, such as compliance, service, legal, and security. It’s about really comprehending the token. And if it passes the tests, then the listing limit is set.”
Canadian regulators have taken a harsh stance on exchanges allegedly not abiding by the new rules. In March, Binance ceased operations in the province of Ontario and admitted to the Ontario Securities Commission (OSC) that it was unregistered there. Similarly, the OSC took enforcement action against cryptocurrency exchanges KuCoin and Bybit, claiming a violation of securities laws.