The recent Blockchain Futurist Conference in Toronto addressed regulatory issues surrounding stablecoins in Canada and their status as securities.
Expert Remarks on Stablecoin Classification
Tanim Rasul, COO of Canadian crypto exchange NDAX, expressed that Canada 'got it wrong' by classifying stablecoins as securities. He emphasized that regulators should consider viewing stablecoins as payment instruments.
CITE_W_A: “I’m sure the regulators are wondering if this was the right choice to approach stablecoins as a security. […] I would just say, look at MiCA, look at the way they’re approaching stablecoins. It’s a payment instrument. It should be regulated as such.”
Market Response to New Regulations
In December 2022, the Canadian Securities Administrators (CSA) classified stablecoins as 'securities and/or derivatives' following significant events in the crypto market. This decision led several major crypto companies, including Binance and OKX, to scale back operations in the Canadian market.
Future Prospects of Stablecoins
Despite regulatory hurdles, Canada’s digital asset market continues to flourish. It is projected that by 2030, the annual revenue of the local crypto industry will reach $617.5 million. Stablecoins have emerged as a key use case for cryptocurrencies, enjoying wide recognition and increasing market capitalization.
Discussions at the Blockchain Futurist Conference highlight the importance of reevaluating the regulatory approach to stablecoins in Canada and their impact on digital asset development.
