The Canadian capital market regulators are planning to establish new rules to reduce the risks associated with the Cryptocurrency trading platforms. This has happened post sudden death of Gerald Cotten who was the founder and the chief executive officer of the crypto exchange Quadrigacx that has led to about $145 million in the frozen or missing
Cryptocurrencies. In a new joint consultation paper on 14th of March, the Canadian Securities Administration (CSA) along with the Investment Industry Regulatory Organization of Canada (IIROC) has explained the need for the tailored requirements to address the novel features and the risks of the digital currency exchanges. He stated that it is required to adapt to new innovations and provide clarity to the market about how the regulatory requirements might best be tailored and applied to these unique business models while maintaining the investor protection.
Gerry Cotten has died in India on 9th of December without revealing the keys of the cold wallets that contained CAD $190 million that is equivalent to US $145 million. A judge from Nova Scotia Supreme Court in February has granted request for the creditor protection in February from as many as 115,000 customers. In such a tricky situation, the CSA and IIROC have resolved the case of not only to provide the clarity for the Cryptocurrency businesses but as well create greater market integrity and address the investor protection risks explaining that the regulators from all parts of the world are currently contemplating the important issues that surrounds the regulation of the Cryptocurrency assets including the appropriate regulation of the platforms. He further stated that they are intending to use the feedback to establish a framework providing regularity clarity to the platforms, addressing the risks to the investors creating greater market integrity. Capital Market Regulators steep to regulate the cryptocurrency is the need of the hour.