Canada’s Investment Industry Regulatory Organization To Issue Proposals On Blockchain And Crypto Regulations
The Investment Industry Regulatory Organization of Canada (IIROC) has shaped a working group to prescribe a potential regulatory response to blockchain applications within the capital markets community. The news originates from a June 25 notice summarizing IIROC’s goes for the 2019 financial year.
Canada’s IIROC is an NGO self-regulatory body that means to serve the general population interest by proposing measures to ensure investors and support healthy domestic capital markets.
As a feature of its vision and needs for the imminent year, the IIROC traces what it considers to be the stakes of the rise of blockchain innovation and related applications, including digital currencies, expressing that:
“The potential application of blockchain technology is poised to dramatically alter the very ecosystem that underpins the capital markets. Digital assets such as cryptocurrencies… have already begun to impact the capital markets in significant ways, as potential direct or indirect investments, or in the form of initial coin offerings, cryptocurrency exchanges, etc.”
So as to “keep pace” with the “fast-evolving” crypto circle and its “transformational implications” for the current budgetary request, IIROC’s recently framed working group will center on building information of new innovations.
The association will also liaise with other Canadian regulators and partners to build up a steady regulatory methodology.
Prior this month, the Canadian government released an official draft of new regulations for crypto exchanges and payment processors, trying to fortify their consistency with the nation’s Anti Money Laundering and Anti Terrorist Financing Regime (AML/ATF).
As per Cointelegraph thorough examination, this spring outlined, the nation has been proactive in creating blockchain applications across various fields. These incorporate fund, government, lawful, wellbeing, education, space, national and multinational cryptocurrencies, vitality, and initial coin offerings (ICOs).
In particular, the Bank of Canada (BoC) has been exploring different avenues regarding a major blockchain Proof-of-Concept (PoC), named “project Jasper,” for securities settlements since 2016, which would tokenize both money and assets to enable instant exchange.
Prior this month, a BoC official publicly voiced questions with regards to the potential focal points of the task, proposing that “at this time, there is no cost-saving effect compared to the existing central bank system. Hacking and other operational risks are likely to occur.”