Regulatory Framework is Considered in Canada for Cryptocurrency Exchanges
By Mark Lemon – Cryptocurrency Professional
The Canadian Securities Administrators (CSA) along with the Investment Industry Regulatory Organisation of Canada (IIROC) have been looking to introduce framework for cryptocurrency exchanges. The authorities published a consultation paper to gain the opinion of the FinTech community on how this framework should be developed. Any exchange looking to buy and sell Bitcoin would be subject to the new regulation.
The cryptocurrency industry has continued to grow over the past few years and has established itself as an industry of its own. Cryptocurrencies are still in the earlier stages of development which come with inherent risks that regulators wish to address with relevant securities laws. An exchange selling crypto classified a security or derivative, would be subject to applicable securities and derivative regulations.
Canadian regulators have expressed that cryptocurrency exchanges might fall under a hybrid classification as they’re able to operate and conduct multiple functions. These exchanges can behave as alternative trading systems, custodians and clearing agencies. Canadian regulators are therefore preparing bespoke regulatory requirements to combat risks associated with buying and selling Bitcoin online.
Canadian cryptocurrency exchanges are currently not regulated under any regulatory body which was highlighted in the recent QuadrigaCX incident. CEO Gerald Cotton died last December leaving no fail safe for staff to gain access to the computer holding the platforms funds. With no provision in place, the exchange has been unable to sell crypto and exchange Bitcoin for clients and owes $190 million.
With the correct regulations in place, the QuadrigaCX situation may have been avoided allowing them to continue their operations. Cryptocurrency exchanges can handle millions of dollars’ worth of assets and should be regulated and audited according to the substantial risks involved.
You can find all the evolving news in the crypto space by heading to our site. Don’t forget we are able to sell crypto UK so check us out!
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards