Canada, the third largest country on the North American continent, is expected to become the next “El Salvador” to legalize Bitcoin and be home to the largest crypto companies.
Canada could be the next “El Salvador” to legalize Bitcoin
It appears that Canada’s regulatory situation for cryptocurrencies was more favorable than that of its North American counterpart, the United States.
The country recently made history by approving its first crypto ETF. The ETF offered by Purpose Investments will be available to investors in February of this year and will be traded on the Toronto Stock Exchange with BTCC tickets.
An exchange traded fund (ETF) is a security that tracks an index, sector, commodity or other asset and can be bought or sold on a stock exchange like normal stocks. Bitcoin ETFs allow investors to invest in Bitcoin without actually holding Bitcoins as the ETF does the holding while they just reap the benefits.
Other ETFs quickly followed suit. These include the CI Galaxy Ethereum ETF, the Evolve Bitcoin ETF (EBIT) and the Purpose Ether ETF, which have been very successful. A recent Bloomberg report found that a third of the 25 most actively traded ETFs on the Toronto Stock Exchange are crypto funds.
The Canadian Elite Basketball League (CEBL) has also announced that it will be giving its professional basketball players the opportunity to receive their salaries in cryptocurrency. Payment is facilitated by the Bitbuy crypto exchange, which converts players’ Canadian dollar salaries into crypto on request.
Obstacles on the way to legal Bitcoin bidding in Canada
Although there have been disruptive steps in the adoption of cryptocurrencies, there are still many obstacles ahead of us. One of them is the increased likelihood that Canadian regulators will beat the crypto exchanges.
According to Bitcoin News, the Ontario Securities Commission (OSC) has charged Bybit, one of the largest cryptocurrency exchanges in the world, with “operating an unregistered trading platform for crypto assets.” The exchange could face fines of up to $ 1 million if the fees are confirmed. A similar legal process was previously initiated against the KuCoin crypto exchange.
On the flip side, the central bank of Canada, the Bank of Canada, also recently announced that it is not ruling out the issuance of central bank digital currency. Timothy Lane, the bank’s deputy director, told Global News that the bank was working on greener energy options for a digital currency.
While the bank is not considering issuing digital currency anytime soon, if it does, it intends the digital currency to have a smaller carbon footprint than Bitcoin. If so, it is feared that Bitcoin adoption in the country could slow down significantly.
Overall, Canada is showing signs of accepting digital currencies faster than many other countries. While regulation remains a major issue, increased institutional interest in the country, if levered, could put Canada on the forefront of Bitcoin adoption.
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Source: Defi. Magazine