Canadian cryptocurrency exchanges are perplexed by the inaction of the local securities regulator as Crypto.com, a Singapore-based crypto exchange, is actively expanding its services over Canada without any approval from the local authorities, The Globe and Mail reports.
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Justin Hartzman, Co-Founder of CoinSmart Financial, a Toronto-based cryptocurrency platform, finds it "absolutely ridiculous" that Crypto.com can engage in on the ground blanket advertising of their products to Canadians. The report says the process of getting regulated in Canada — according to Hartzman — is long and time consuming. What is more is that all of this disadvantages business as many unregulated exchanges have been on the local market for a while.
"Of course we want to follow the rules. So while other companies are growing at an alarming rate, offering services to customers around the world, we have to go to each country we want to operate in, speak with their regulators and obtain licensing," Hartzman highlighted.
Michael Arbus, CEO at Bitbuy, says unregistered companies such as Crypto.com create an "unfair playing field" for local crypto companies that have "endeavored to comply with domestic securities regulations."
"...it is hard for Canadian crypto companies to compete with these unregulated multinational platforms, like Crypto.com, and their massive marketing budgets on our home soil. This allows these international platforms to market a lot of coins and products that our Canadian regulators would never approve if they were licensed," Arbus explained.
The increasing pressure from Canadian regulated cryptocurrency companies comes after Crypto.com spent almost $1 billion on marketing deals, including putting its logo on the ice at the Bell Centre, home of the Montreal Canadiens NHL team.
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