BIGG Digital Assets, who own online cryptocurrency brokerage Netcoins, has announced that it applied for registration from the British Columbia Securities Commission and the Canadian Securities Administrators’ regulatory sandbox.
If approved, Netcoins will become the first regulated open-loop cryptocurrency platform to operate in Canada.
The CSA Sandbox is an initiative to support fintech businesses seeking to offer innovative products, services and applications in Canada. It aims to enable firms to launch innovative ideas while remaining compliant to all regulatory requirements.
Netcoins president, Mitchell Demeter, commented: “There have been numerous high profile failures of Canadian crypto asset trading platforms in the past two years, costing investors hundreds of millions of their hard earned dollars, and shaking consumer confidence.”
— BIGG Digital Assets (@BiggDigitalCo) September 30, 2020
Demeter alludes to the Quadriga CX scandal that saw investors lose $190 million that was permanently locked up in cold wallets following the sudden death of its CEO, Gerald Cotten.
The Netcoins president continued: “A lack of oversight has created instability in the industry, and we believe this instability is slowing consumer adoption of cryptocurrency.
“Hence, we at Netcoins see the need for a regulated crypto asset trading platform in Canada that investors and traders can trust. Being owned by a public, audited and transparent company has given Netcoins the unique ability to bring a safe crypto trading solution to life across Canada.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.