Pamela Draper, the president and CEO of cryptocurrency platform Bitvo, recently shared her perspective on companies leaving the Canadian market due to regulatory conditions. During an interview with Cointelegraph at the Collision conference in Toronto on June 29, Draper acknowledged that while firms such as Binance, dYdX, and Bybit have announced their departure from Canada in 2023, the country still offers a regulatory framework that can be followed. In contrast, she mentioned the ongoing legal challenges faced by Binance and Coinbase in the United States from the Securities and Exchange Commission.
Draper emphasized that in Canada, despite not agreeing with every aspect, companies have a set of guidelines to adhere to, providing a clearer regulatory path. However, she also pointed out that some firms operating in other countries might be hesitant to invest in Canada due to the existing regulatory framework. In 2021, Canadian regulators imposed requirements on crypto firms, giving them a two-year window to register as an “investment dealer” or “regulated marketplace” and expected compliance by 2023.
Draper referenced the failed acquisition of Bitvo by FTX, a now-defunct crypto exchange, in November 2022. Initially, she had no concerns about FTX’s liquidity reports because the exchange was seen as a proponent of regulatory advancement. However, FTX’s subsequent bankruptcy and the arrest of its former CEO, Sam Bankman-Fried, in the Bahamas came as a surprise to many. Draper highlighted that if the acquisition had gone through, Bitvo would have been entangled in the bankruptcy proceedings, which was an unexpected turn of events.
Several firms, including Bybit, Binance, dYdX, OKX, and Paxos, have announced scaling back or exiting operations in Canada. Notably, during the Collision conference, Canadian lawmakers in the House of Commons released a report underscoring the advantages and potential of blockchain technology across various sectors.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up