Over 30% of Canada’s Residents Will HODL Crypto – OSC Chief

Grant Vingoe CEO of the Ontario Securities Commission (OSC) has said regulations are key to trust and adoption of crypto as many Canadians planned to acquire crypto in the near future.

Grant shared this data while delivering a keynote address before the Economic Club of Canada about the regulation of digital assets and their intermediaries.

According to the OSC chief citing research set to be published later in the month, over 30% of Canada’s residents have indicated interest to acquire crypto assets by 2024.

This, therefore, calls for better regulations on the digital asset class as the growing crypto market is growing interconnected to the financial system posing a serious concern for the economy.

Although the regulator maintains a neutral stance on crypto, it said none of the characteristics of the digital asset drives its regulatory approach adding that it applies the same reasoning across the board for all new investment products entering the Canadian market.

During the event, Grant took his time to dispel some of the misconceptions about proper regulations for the nascent sector whose market capitalization remains close to a trillion dollars despite the significant decline in the past several months.

Citing the failure of QuadrigaCX that sank over $100 million of investor funds, the regulator believes trading platforms need to be scrutinized to prevent harm to investors’ confidence while maintaining a regulated environment for genuine innovators to develop their ideas.

Canada calls for improved regulations

Recall that while acknowledging the rapid advancement of the crypto sector, the Bank of Canada had called for the urgent need for regulations in the space. The regulator said this was necessary as growth in the sector has attracted new investors who are unaware of the associated risk in the asset class.

This unawareness in the industry could result in a spillover effect on the broader financial system resulting in a violent price situation.

Meanwhile, as part of its development goal on digital currencies, the Bank of Canada has decided to partner with the Digital Currency Initiative team of the Massachusetts Institute of Technology (MIT) to develop its Central Bank Digital Currency (CBDC). The nation had already indicated interest in the development of its national digital currency back in 2019.