The Canadian Ontario Security Commission (OSC) announced recently that it’s considering regulating the cryptocurrencies and initial coin offerings by 2019. The regulator appreciates the development of the cryptocurrencies as an innovation especially in the financial sector that should not be ignored and hence the sector should be regulated to mitigate the risks associated with the industry.
According to the commission, the crypto sector is growing tremendously and the consumers interested in venturing into the industry need to be guided and protected particularly on what they are purchasing. The initial offerings of the cryptocurrencies also have fundamental issues that should be addressed in order to ensure significant investor protection aspects are put in place.
Therefore, the OSC is waiting for the feedback on the regulation up to May before finalizing the cryptocurrency regulations. All the key aspects should be identified and addressed systematically to ensure that the investors and other key stakeholders are not affected by the frequent fluctuations of the crypto markets.
The Ontario Securities Commission is a key regulatory agency that addresses and imposes the securities legislation within the Canadian province of Ontario. The regulator also plans to come up with new mechanisms to raise more capital to fund the potential key areas in the crypto sector to potentially protect the investors and other participants in the crypto-related assets.
Despite the negative perception about the crypto assets, the OSC believes that there is a measure of success although more need to be done to fill the gaps. Since the regulator is regarded as the fintech innovation hub globally, there is a need to support the development of the digital currencies for the future markets.
The innovation behind the development of the virtual currency is increasingly driving more complexities especially to the financial markets and new products and services are emerging from the latest technologies that are confusing the investors thus putting them at risk of losing their hard-earned cash.