Cryptocurrencies have remained in the grey area of Canadian regulations. But sadly looming on the horizon are many negatives . ICOs are not affected by majority of the current regulations, that will soon change.
Needing Regulation
At this moment in time there is no framework around cryptocurrencies in Canada. Not even the United States does, or many other countries for that matter. But the time is coming. The cryptocurrency market is progressing at an astonish rate overall. Spearheading the charge is Bitcoin with growing numbers in tow. Not many could ever have foreseen a one hundred and fifteen billion dollar growth in 2017. And the year has not even reached the end of the 3rd quarter. They are on a tear that governments have determined needs regulation.
Governmental Regulations
At the moment in time both the United States and Canada are looking into possible regulations to apply to ICOs such as Bitcoin and Ethereum. Both the United States SEC and the Canadian CSA are aiming to label cryptocurrencies as securities. Which is a fitting label since they are tied to a business’s profits and future success. The new regulations will aid the investor, but could limit businesses. Not to mention the fact that the anonymity of cryptocurrencies like Bitcoin would need to be changed. Or at least opened up to governments.
But what drawbacks with these regulations hold? Would this surge have occurred if regulators had thought of what could happen?
A future Regulated
Considering securities must be reported to the government of the United States for taxation purposes every transaction will require documentation. In what ways can cryptocurrencies adapt to this; maybe with a log in, or identification based on URL? Will the government apply an access code for websites even? While this is just speculation, it might happen. The ability to keep ones identity safe with the usage of Bitcoin may very well be coming to an end in North America. All we can do is watch.
