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Globe says OSC, others should avoid cryptocurrencies

2019-02-07 09:17 ET - In the News

Also In the News (C-*ASC) Alberta Securities Commission
Also In the News (C-*BCSC) BC Securities Commission
Also In the News (C-*QSC) Quebec Securities Commission

The Globe and Mail reports in its Thursday edition that the bizarre meltdown of QuadrigaCX has prompted predictable calls to regulate cryptocurrency exchanges. The Globe's Barrie McKenna wonders what there is to regulate. QuadrigaCX's top executive, 30-year-old Gerald Cotten, is dead, and no one can break into the encrypted computer where he apparently stashed $180-million worth of virtual currencies belonging to the platform's 100,000 users. Canada regulates many things -- from drinking to skinny-dipping -- but this is one area regulators should probably avoid. Bitcoin and other cryptocurrencies are not money, and they are not particularly good investments either. Many are now worthless. The Bank of Canada has no role in regulating cryptocurrencies, but securities regulators want in. The Canadian Securities Administrators is working with the investment industry's self-regulatory body to develop rules for platforms trading in crypto assets. Mr. McKenna says that this effort is fraught with danger. Crypto trading is a risky business that easily crosses international boundaries, and with limited resources, regulators already have their hands full with a multitude of traditional investments.

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