The post Canadian Crypto Platforms Grapple with Stablecoin Regulation Compliance Amid Extended Deadlines appeared on BitcoinEthereumNews.com.

Crypto platforms in Canada are facing challenges as they prepare for incoming stablecoin regulations. These regulations, introduced by the Canadian Securities Administrators (CSA), have been subject to multiple extensions. A notable insight is from Kraken, which remains optimistic about navigating the regulatory landscape, unlike several international exchanges that have exited the market. Discover how Canadian crypto platforms are navigating the new stablecoin regulations and the impacts of regulatory extensions on the market. Extended Deadlines for Stablecoin Compliance The Canadian Securities Administrators (CSA) have once again extended the compliance deadline for crypto trading platforms dealing with value-referenced crypto assets (VRCAs). Initially set for April 30, 2024, the new deadline now stands at December 31, 2024. This second extension underscores the significant technical challenges these platforms face, as well as the CSA’s willingness to explore alternative compliance mechanisms. Details of the VRCA Regulations The VRCA regulations, which were first introduced in February 2023, set stringent criteria for stablecoins. These rules prohibit the use of algorithmic stablecoins not backed by a single fiat currency, whereas stablecoins that are backed by a single fiat currency (FBCAs) are permitted for trading until the new regulations take effect. The repeated extensions reflect the crypto industry’s struggle to adapt to these regulations, which seek to enhance investor protection and market integrity. Industry Reactions and Strategic Movements The introduction of these stringent regulations has led to significant market responses. A wave of international crypto exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, has exited the Canadian market between March and May 2023. This exodus underscores the challenges posed by the new regulatory framework, which some platforms have deemed too difficult to navigate. Support and Collaboration from Local Players In contrast to the international departures, Canadian-based platforms like Kraken have committed to remaining operational within the country. Kraken’s managing…

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Filed under: News - @ September 27, 2024 11:25 pm