BIGG News Out Of Canada: The Country Approves Its First Exchange For Trading Crypto Contracts
The news comes a few months after Canada cracked down on international exchanges trading crypto contracts.
Covered:
- BIGG Digital Announcement
- Canada And Crypto
- Future Of Crypto In Canada
BIGG Digital Announcement
$BIGG subsidiary @Netcoins is registered as restricted dealer ??in Canada.
"This enables Netcoins to expand advertising, expand coin offerings, open new partnerships and attract customers seeking a licensed & regulated trading platform." – Mark Binns, CEOhttps://t.co/x1gErOlYtg pic.twitter.com/j8WXGbR77r
— BIGG Digital Assets (@BiggDigitalCo) September 30, 2021
BIGG Digital announced today that their crypto exchange, Netcoins, registered as a “restricted dealer.” As a restricted dealer, Netcoins may trade crypto contracts in Canada. This makes Netcoins the first in the country to expand into the crypto futures market.
According to their press release, BIGG Digital believes this move will, “provide a distinct early mover advantage as the industry continues to mature and evolve into a regulated framework.”
Along with the move into the futures market, BIGG Digital announced that they will be adding new coins, launching Netcoins Pay, expanding into the US, and bulking up advertising and marketing campaigns.
The presser also noted that they have yet to officially been approved in Newfoundland, but “anticipates registration in Newfoundland within the week.” Otherwise, they are registered in the rest of Canada, including Ontario.
Canada And Crypto
Credit: https://biggdigitalassets.com/
Earlier this year, the Ontario Securities Commission (OSC) began cracking down on international exchanges trading crypto contracts.
Binance, the world’s biggest exchange, refused such registration, opting to cease operations by the end of 2021. Binance has yet to publicly comment on why they didn’t choose to register in Canada.
The other exchanges the OSC sent notices to like KuCoin, Bitmex, and Bybit have also yet to choose to register as a restricted dealer.
It’s unclear why these exchanges would opt out of a market as significant as Canada. But a glance through the registration requirements finds some reasons why an exchange might not want to comply.
Under commissioner’s powers, it states:
“(7) The Commission may, if it appears to be in the public interest, make any decision,
(a) with respect to the manner in which a registered commodity futures exchange carries on business;
(b) with respect to any by-law, rule, regulation, policy, procedure, interpretation or practice of a registered commodity futures exchange or its clearing house; or
(c) with respect to trading on or through the facilities of a registered commodity futures exchange or with respect to any contract traded on a registered commodity futures exchange, including the setting of levels of margin, daily price limits, daily trading limits and position limits. 1999, c. 9, s. 30.”
Essentially, at any time, the commission can pretty much do anything it wants as long as it’s “in the public interest.” Kind of hard to do business with language like that. Especially in an industry where customer privacy is paramount.
It’s not surprising, then, that a company like BIGG Digital wouldn’t take issue with any of that. After all, their motto is “Compliance First Crypto.”
Future Of Crypto In Canada
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Back in June, Brian Mosoff, chief executive for Ether Capital, spoke to Financial Post about Binance leaving Ontario. “It’s good for platforms that do want to comply because it removes a major competitor,” Mosoff said. “What you’re seeing is an opportunity for Canadian platforms.”
Now three months later, BIGG Digital is the first to take advantage of the opportunity. No word yet if other Canadian exchanges will follow suit.
But Mark Binns, CEO of BIGG Digital believes that “regulation will shrink the competitive playing field in Canada, as non-compliant companies are forced out of the market.”
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Text source: CryptosRus
