The rapid growth of the crypto market is prompting Canadian regulators to accelerate the development of regulations and laws

The rapid growth of the crypto market is prompting Canadian regulators to accelerate the development of regulations and laws

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Answer The rapid growth of the crypto market is prompting Canadian regulators to accelerate the development of regulations and laws

The Canadian government will begin consultations on cryptocurrencies, stablecoins, and CBDCs.

The governing body emphasized that such assets must operate under strict supervision as they can facilitate illegal operations and pose a challenge to democratic institutions.

Cryptocurrencies are among the priorities in Canada:

As revealed in its 2022 mini-budget, the Canadian federal government will aim to impose rules on the domestic crypto sector.

Officials have begun a series of consultations with shareholders to discuss the pros and cons of digital assets, stablecoins, and central bank digital currencies.

Canadian authorities have argued that this is a vital step because the digitization of money has transformed the global financial system.

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They also believe that cryptocurrencies can fuel criminal affairs and violators use them to bypass penalties.

The statement of the Canadian authorities indicated the following:

In the past several months, digital assets and cryptocurrencies have been used to evade global sanctions and fund illegal activities, both in Canada and other countries around the world.

To help address these challenges in Canada, the 2022 budget announced the government’s intent to launch a legislative review of the financial sector focusing on the digitization of funds and maintaining financial sector stability and security.

Several politicians and financial experts have warned that Russia may use digital currencies to evade some sanctions imposed by the West after Putin launched his own military operation in Ukraine.

On the contrary, CZ, CEO of the world’s largest cryptocurrency exchange, believes that bitcoin and altcoins are not a suitable option to avoid financial penalties.

He emphasized that the asset class is highly traceable due to the underlying blockchain technology, and governments around the world can easily detect such transactions.

The position of the Central Bank of Canada:

The central bank of the North American country urged the government to apply the rules to the industry.

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Caroline Rogers, the first deputy governor, told in June that the move should be completed as soon as possible because the asset class is developing and attracting more investors.

From her point of view, some individuals do not realize that they may lose their entire investment when they enter the crypto market.

Read:Bitcoin “BTC” is on a different upward trajectory this time

It also cautioned:

This is still a small area, but it is growing very fast.

We don’t want to wait until it gets much bigger before we put regulations in place.

The Bank of Canada estimated that approximately 13% of adults in the country were Bitcoin HODLers (as of the end of 2021), while 90% of the population knew of the existence of Bitcoin.

The Bank of Canada study determined that Bitcoin is the most attractive to those with low financial knowledge.

Investors with sufficient knowledge of the economy are the second most likely demographic group to own the underlying cryptocurrency.

Read also:

The company “MicroStrategy” investing in Bitcoin publishes its report for the third quarter of 2022

Will Ethereum be fully censored due to OFAC regulations?

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