At the end of last year, the Bank of England highlighted the need for a global crypto regulatory framework. At the time, the UK central bank raised concerns about the crypto market and financial stability. Since then, the crypto market has seen a snowball effect. Governments around the world have stepped forward in alignment with the Bank of England on the need for a framework.
Increased regulatory scrutiny has also led to a marked increase in regulatory activity. The focus has not only been on crypto exchanges and illicit activity, but also crypto mining, NFTyes, and the metaverse.
Even rating agenciesthe International Monetary Fund and, the US Internal Revenue Services they have joined what appears to be a growing united front.
The White House Executive Order
At the turn of the year, countries including India, South Koreathe United Kingdomthe usand even Canada have taken some kind of action against the crypto sector.
Amidst the flurry of activity, the White House recently Announced the imminent release of an Executive Order on crypto. The order will task agencies with regulating cryptocurrencies as a matter of national security. Not only covering crypto, but also other digital assets, the agencies will also have to work with regulators globally. The order could become the blueprint for a global crypto regulatory framework.
With the US administration’s stance on crypto mining and the rise of illicit activity in the cryptocurrency market, the framework could prove rigid.
Canadian Lawmaker Proposes Favorable Bill On Crypto Assets
Following recent news about the Ontario Securities Commission and crypto exchanges, a Canadian lawmaker reportedly presented a bill this week to create a regulatory framework.
Bill C-249 would require Canada’s Finance Minister to consult with designated crypto exports in each province. While various regulators seek to clamp down on crypto activity, the bill seeks to support the growth of the crypto sector. The proposed bill would achieve this by ensuring that legislators are well versed in the crypto market before making political decisions.
The bill is titled “An Act Representing Fostering The Growth Of The Crypto Asset Sector.” The bill recognizes that crypto assets have significant economic and innovative potential for Canada. The purpose of the bill is to focus the policy “on reducing barriers to entry in the sector, protecting those working in the sector and minimizing the administrative burden”.
If the bill becomes law, Canada would become one of the few that openly supports growth in the crypto asset sector.