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Will Cardano [ADA] be affected by the new Canadian regulatory framework?

Sthuthie Murthy

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Will Cardano [ADA] be affected by the new Canadian regulatory framework?
Source: Pixabay

“Well thanks, Canada,” says the CEO of IOHK, the owner of the product Cardano [ADA] as he came across the news stating that the Canadian government has declared cryptocurrency businesses to be regulated. As per the Canadian government’s new move, all businesses that are involved in digital currency dealing will now be regulated as Money Services Businesses [MSBs].

The regulatory framework has been the topic of discussion in the cryptocurrency market for a very long time now, not restricted to any region around the world. As per the new law, Canada’s financial ecosystem will be safeguarded from Anti-Money Laundering and Anti-Terrorist Financing [AML/ATF] activities which have been the wish of the government.

When seen on the whole, Canada is the first amongst the other countries to officially state how cryptocurrency-related businesses will be regulated and if they need to be regulated at all. Canadian government saw the need to address a number of deficiencies including the above mentioned serious regimes and made the required amendments.

The official release document from Canadian government described:

“The proposed amendments to the regulations would strengthen Canada’s AML/ATF Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; updating the schedules to the regulations; including foreign money service businesses (MSB) in Canada’s AML/ATF Regime; clarifying a number of existing requirements; and making minor technical amendments.”

According to their release, the result of the proposed amendments would be in a total unauthorized admin cost increase on businesses which estimated to around $463,098. It would also have a nationwide impact of $1 million or more including small businesses.

The evolving financial services are definitely influenced by digital currencies, especially decentralized digital payment systems that operate beyond the traditional financial system. These virtual currencies can be centralized or decentralized and additionally convertible or non-convertible depending on whether they can be exchanged for funds.

They clearly mentioned as they stated:

“Convertible virtual currencies are vulnerable to abuse for money laundering and terrorist activity financing purposes because they allow greater levels of anonymity, or in some cases complete anonymity, when compared to traditional non-cash payment methods. Virtual currencies can be accessed globally via online or mobile systems. They allow for the rapid transfer of funds within or across borders, oftentimes without any intermediary, are generally characterized by non-face-to-face customer relationships and can circumvent the physical “brick and mortar” financial system entirely.”

Adding on:

“Due to these characteristics, virtual currencies are increasingly being used to facilitate fraud and cybercrime, and to purchase illicit goods and services on the dark Web.”

The new payment methods and the Internet has made way for foreign entities to offer MSB services in Canada without a business place. These possess risks of being exploited and the current AML/AFT framework was not enough to capture these online and non-traditional methods, representing a legal gap in Canada’s legal framework. This has also allowed an uneven playing field for Canadian domestic competitors who must abide by the Act.

This is a general regulation implying to all cryptocurrency related businesses but Cardano had special attention amongst the market speculators since Charles posted about it,



Bertalan Vcsei:

“This was expected at some point … how does it impact Cardano’s adoption strategy?”

Sif:

“Mr. @IOHK_Charles, how do you see this decision impacting the future of Cardano, especially if other countries follow their lead? Will this impeded development or cause undo regulatory burden? Thank you.”





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Sthuthie Murthy is a full-time reporter at AMBCrypto. She has been researching and writing about the Blockchain technology for a year now. Her passion for blockchain has led her to be a part of AMBCrypto's news reporting team. She does not hold value in any cryptocurrencies currently.

Altcoins

Tron DApp Weekly Report: Gambling apps leads the surge in Tron DApp numbers

Namrata Shukla

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Tron DApp Weekly Report: Tron DApps number led by Gambling apps
Source: Pixabay

Tron, the eleventh largest cryptocurrency on CoinMarketCap, recently collaborated with Bitpie, a partnership that would help startups to bridge the gap in vulnerable financial systems. Tron’s token might be lagging in terms of performance in the market but, Tron DApps continued to surge.

The DApp weekly report released by the Tron Foundation reported an increase of 22 DApps in the Tron ecosystem, taking the total to 392. It noted that gambling DApps mainly contributed to this growth as 17 DApps were gambling-based. Decentralized exchanges followed suit, as 3 new DApps made their way into the Tron DApp ecosystem. The main highlight for the entire Tron community was the partnership with Opera, a mainstream browser.

Tron introduced a DApp ‘Lucky Moon,’ an entertainment-based DApp that pushes users to estimate the current time to run away from the imploding rocket with a specific reward rate. As the rocket takes-off, the reward rate keeps increasing and the player will have to escape at the right time. An extension of this game is ‘Tyrant Annihilation,’ where users need to collect seven types of equipment to kill a tyrant. The DApp might have taken inspiration from The Avengers.



The report made note of the fact that the Tron public chain received support from Aocoin wallet, a decentralized secure digital currency wallet. My Token, a software company that specializes in market information has been integrated into Tronscan and TRX market, leading the way to user traffic in DApps ecosystem.

At press time, Tron was valued at $0.0283 with a market cap of $1.89 billion. The 24-hour trading volume of the coin was noted to be $690.34 as it reported 6.36% growth over the past day. The coin grew by 8.80% over the past seven days, but fell by 0.44% in an hour.





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