Blockchain Working Group Formed By Canada’s Investment Industry Organization

Blockchain, News, Regulation | June 27, 2018 By:

A new working group has been formed in Canada to develop a potential regulatory response to blockchain applications within the capital markets ecosystem.

The new working group was established by the Investment Industry Regulatory Organization of Canada (IIROC), a national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in the country.

In a new notice summarizing IIROC’s aims for the 2019 fiscal year, the IIROC said that the rise of innovative technologies, such as blockchain and digital assets, has transformational implications for markets, investors, dealers and overall industry infrastructure.

“The potential application of blockchain technology is poised to dramatically alter the very ecosystem that underpins the capital markets,” IIROC said. “Digital assets such as cryptocurrencies are examples of blockchain applications that have already begun to impact the capital markets in significant ways, as potential direct or indirect investments, or in the form of initial coin offerings (ICO), cryptocurrency exchanges, etc.”

In order to “keep pace” with the “fast-evolving” crypto space, IIROC’s newly formed working group will focus on building knowledge of new innovations and recommend a potential regulatory response. The working group will also liaise with other Canadian regulators and stakeholders to ensure the regulatory response is well aligned and consistent.

The news came after the Canadian government released an official draft of new regulations on crypto exchanges and payment processors. Under the draft law, crypto exchanges and payment processors will be considered as money service businesses (MSB) and will be required to report large transactions.