Canadians calling for regulation
The time has come in Canada, in which greater regulations are being called for within the blockchain industry.
A document was recently published as a joint effort between Investment Industry Regulatory Organization of Canada (IIROC) and Canadian Securities Administrators (CSA). This document was released to offer a proposed regulatory framework for the industry, in addition to garnering the opinion of other investors and regulators.
“The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces – and, together, securities regulators are taking steps to deepen our understanding of this area…We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”
The ongoing saga involving QuadrigaCX is a perfect example of why many feel greater regulation is necessary within Canada. Undoubtedly, the QuadrigaCX situation played a role in the timing of the release of the proposed framework.
For those unaware of the situation evolving with Quadriga, make sure to check out the following article. Simply put, Canada’s most prominent crypto exchange lost access to hundreds of millions worth of crypto after the unexpected death of their founder. Due to poor business practices, this money has been irretrievable.
Authorities looking for help
Beyond industry regulations, the world of crypto has to also contend with, and worry about, petty theft. This past week saw Canadian authorities looking for help in both identifying, and locating, 4 individuals. Each of these men are suspected of defrauding a Bitcoin ATM company out of roughly $200,000.
These individuals were able to do this through the exploitation of a bug in the ATMs, allowing for them to ‘double spend’. A double spend event occurs when an individual spends one coin various times. While most systems have redundancies built in to prevent this, the ATMs clearly did not. As a result, the individuals cashed out their BTC for CAD. They then proceeded to cancel the transaction before verified. As they were already in possession of the CAD, they were then able to keep both it and their BTC – allowing for the process to be repeated.
The Makings of a Movie
The unfortunate, and lingering, stereotype that Bitcoin is only used for laundering money and criminal activity has found its way to Hollywood executives. No doubt, it is events like those described here today, that led to the creation of the upcoming film ‘Crypto’.
While fictitious, media outlets such as motion pictures have the ability to sway mainstream audiences, and their perception of cryptocurrencies. If crypto is ever going to shed this stereotype, events such as Quadriga, and the ATM bandits, need to be avoided – perhaps through regulation, as recommended by the IIROC.