OSC CEO Says Over 30% of Canadians Plan to Enter the Crypto Market in the Next Year
- With a population of approximately 38 million, Vingoe implies that over 11.4 million Canadians intend to purchase crypto assets next year.
- Vingoe noted that the regulatory body is keen to oversee the crypto market without picking winners or losers.
- The OSC views the failure of QuadrigaCX in 2019 as an old-fashioned Ponzi scheme wrapped in the jargon of innovation.
Speaking at the Economic Club of Canada, Ontario Securities Commission (OSC) Chief Executive Officer Grant Vingoe highlighted the regulations needed. Crypto market to ensure future prosperity. Vingoe noted that the view that crypto assets need different treatment from other financial instruments is ‘completely misguided’. The OSC CEO noted that their previous research indicates that over 30 per cent of Canadians plan to purchase digital assets as a speculative instrument in the coming years.
With a population of approximately 38 million, Vingoe implies that over 11.4 million Canadians intend to purchase crypto assets next year.
As such, Vingoe noted that the regulatory body is keen to oversee the crypto market without picking winners or losers.
Nonetheless, the Canadian government has arguably shown great interest in Bitcoin and Ethererum digital assets. While most digital assets are regulated in a grey area, the OSC has classified Bitcoin and Ethererum as commodities.
Canada and the Crypto Market
The OSC Chairman noted that most of the crypto market significantly lies within its jurisdictions. Furthermore, Vingoe noted that Canadian investors had placed massive responsibility on them to secure their investment funds.
“The OSC’s activities are governed by our multi-pronged mandate, which requires us to act when something falls within our jurisdiction – and the vast majority of crypto-based entities clearly do. Bitcoin and Ether, for example, are generally considered commodities, given their scale and lack of centralised management,” Vingoe said during the summit on Thursday.
The Canadian regulators fear a repeat of 2019 when over $100 million was wiped out through the QuadrigaCX scandal. Notably, the OSC views the failure of QuadrigaCX in 2019 as an old-fashioned Ponzi scheme wrapped in the jargon of innovation.
The country has made tremendous progress in regulating the fast-growing cryptocurrency market. Back in early 2019, the CSA and IIROC proposed a regulatory framework for crypto asset trading platforms and engaged closely with the industry on what that should look like.
By August 2020, the country’s regulators had approved the first platform to offer services in Ontario. In March last year, the CSA published guidance to improve the quality of disclosures provided by crypto asset reporting issuers.
Canada has one of the world’s leading economies and is, therefore, key to future technology adoption. Furthermore, the country has both institutional and retail investors ready to put funds in disruptive technology markets. As such, Vingoe noted that investors need to be assured of safety while trading in speculative assets.
“It is important that efforts to protect the public interest are not dragged into non-regulatory debates, the likes of which we are seeing more often in relation to crypto assets, ESG, and other areas. We must always be grounded in our mandates and urge others to evaluate our work in that light,” Vingoe said.
I'm passionate about cryptocurrency. I began following the development of Bitcoin and other digital currencies in early 2013, and quickly became fascinated by the potential of this new technology. In the years since, I've followed the rise of the crypto industry with close attention, and written extensively on the subject. .
