Crypto.com, a leading cryptocurrency platform based in Singapore, has made history by becoming the first company to enter into a pre-registration undertaking with the Ontario Securities Commission (OSC). This move signifies Crypto.com’s commitment to adhering to Canada’s stringent financial regulations for crypto products and services.
In a statement from the CEO, Kris Marszalek, highlighted the North American market as a crucial area of potential growth for cryptocurrency operations. This underscores Crypto.com’s strategic expansion into regions with high interest in digital assets.
Previously, Crypto.com has been operating under the regulatory frameworks of the Autorité des marchés financiers (AMF) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in Canada. This recent development further cements its position as a leader within the global crypto landscape.
Crypto.com’s ongoing expansion includes receiving regulatory approvals from various jurisdictions, such as the Cayman Islands where it was granted Virtual Asset Service Provider (VASP) status. Additionally, the company acquired two firms in South Korea to secure its operational presence there. Furthermore, Crypto.com received licenses and regulatory approvals in Italy and Cyprus earlier this year. The platform also introduced an innovative feature within Google Pay, enabling users to purchase crypto directly through the app.
With a strong foundation laid since 2016, Crypto.com now boasts over 50 million users across 90 countries worldwide.
The Canadian Cryptocurrency Landscape:
Growing Popularity but Policy Skepticism
According to the Bank of Canada’s Financial System Review 2022, there has been a notable increase in cryptocurrency ownership among Canadians. The number of bitcoin holders increased from 5% to 13% between 2020 and 2021. Despite this growth, Bitcoin’s high volatility limits its use as a medium of exchange; most users retain it for speculative purposes.
In light of these trends, the Bank of Canada has voiced concerns over the safety and accessibility issues posed by private sector cryptocurrencies. The rise in digital payments during the pandemic has spurred the central bank’s efforts to develop its own digital currency, known as the Central Bank Digital Currency (CBDC), which would address some of these concerns.
In March 2022, the Bank of Canada began a collaboration with the Massachusetts Institute of Technology (MIT) to explore advanced technology’s impact on CBDC design over a one-year project.
