The BC Securities Commission (BCSC) and the Canadian Securities Administrators (CSA) have approved Netcoins as the first crypto trading platform to be registered as a restricted dealer in British Columbia.
This is a landmark announcement for the cryptocurrency industry as it is widely unregulated and tainted with fraud with many high profile cases like QuadricaCX (soon to be the topic of a Netflix documentary) and Einstein in Canada.
Netcoins is also the first approved trading platform, owned by a publicly traded company.
To date, CSA has approved regulation for three crypto asset trading platforms, setting the framework for a national cryptocurrency registration. This puts Canada ahead of the US, which is still licensing state by state.
Netcoins volunteered to go through the regulation process with the BCSC and the CSA because it wanted to rebuild investors’ confidence in the crypto market, which until now, has lacked industry oversight.
With market uncertainty this year, big corporations like Square, Microstrategy and Grayscale have invested hundreds of millions in hard assets like Bitcoin to secure their wealth. Netcoins is now well positioned to service corporations looking to go a similar route.
“This is a defining moment, not just for Netcoins, but for the cryptocurrency industry at large, which for too long has been tainted by industry fraud that has shaken consumer confidence. Many investors and legacy financial system participants recognize the potential that exists in the industry but have been wary due to the lack of oversight. This registration signifies the maturing of the space and brings a certain level of validation, demonstrating that the proper checks and balances are in place with Netcoins,” Netcoins President Mitchell Demeter told Techcouver.
“We expect this type of regulatory oversight to give both consumers and legacy system participants more confidence in the sector, providing Netcoins with a stable foundation to accomplish our goal of bringing digital currencies to the masses.”
Demeter added, “This strengthens the company position for growth, as regulatory clarity allows for the development of strategic partnerships in the financial services industry, as well as being able to leverage mainstream advertising platforms which have been hesitant to work with unlicensed cryptocurrency platforms until now.”