Bitcoin Businesses Push Back Against Proposed Canadian Crypto Regulatory Framework

On May 16, 2019, San Francisco-based crypto exchange Kraken posted on Twitter a summary of its response to the Canadian Securities Administrators (CSA) “Proposed Framework for Crypto-Asset Trading Platforms”:“Kraken strongly recommends against Canada imposing a security law framework on cryptocurrency exchanges in public response to the Proposed Framework for Crypto-Asset Trading Platforms published by the CSA,” Kraken wrote.Jonathan Hamel, a Bitcoin technology consultant with the Montreal Economic Institute and founder of Académie Bitcoin, told Bitcoin Magazine that, in his view, the proposed security framework is a clear attempt to regulate Bitcoin and bring it under the purview of the CSA.“Canadian Regulators are wandering outside their jurisdiction when it comes to Bitcoin,” Hamel said. “There are already sufficient safeguards such as KYC/AML imposed on money services businesses by Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).”And, beyond any attempt to regulate Bitcoin, Hamel believes that the proposed framework overreaches for other cryptocurrencies as well.“Let's be clear, this is an obvious regulatory capture attempt in which some crypto businesses are participating to gain market advantages,” he said. “Regarding other tokens (ICOs), they should be treated under the existing securities regulation framework. There is no need for additional regulation.”Bitcoin Is Not a SecurityAt the hear...