Canadian financial regulatory authorities are considering putting in place rules for cryptocurrency exchanges in the country.
The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published a consultation paper on Thursday, seeking input from the fintech community on how regulatory requirements can be developed for cryptocurrency platforms.
“The emergence of digital and crypto assets continues to be a growing area of interest,” said Andrew J. Kriegler, president and CEO of the IIROC in a separate statement on Thursday, adding:
“We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”
Considering the “novel” features and risks of cryptocurrencies, the regulators proposed applying securities laws wherever applicable.
For instance, if cryptocurrencies are securities and/or derivatives traded on an exchange, that exchange would be subject to securities and/or derivatives regulatory requirements, they said. Most “utility tokens” have involved the distribution of securities, usually as investment contracts, they added.
The agencies are of the view that cryptocurrency platforms are hybrid in nature, meaning they can perform functions of one or more market participants, including alternative trading systems, exchanges, dealers, custodians and clearing agencies.
Therefore, they are considering the preparation of a set of “tailored” regulatory requirements to address the risks and features of cryptocurrency platforms.
Currently, none of the cryptocurrency exchanges in Canada is recognized as an exchange nor is authorized to operate as a marketplace or dealer, according to the paper.
The recent QuadrigaCX saga highlighted the lack of regulations covering the cryptocurrency industry in Canada.
The Canadian cryptocurrency exchange’s CEO, Gerald Cotten, died last December, apparently without leaving a way for staff to access the computer storing the failing exchange’s funds. QuadrigaCX still owes its customers roughly $190 million in both cryptocurrency and fiat.
Last month, the securities watchdog in the Canadian province of British Columbia, the British Columbia Securities Commission (BCSC), said that it has no remit to regulate the troubled exchange.
The CSA and IIROC consultation paper is open for public comment until May 15.
After ‘Meaningful’ Victory, Ripple Will Likely Issue Motion to Dismiss XRP Class-Action Lawsuit, Says Securities Lawyer
A lawyer who focuses on litigation involving securities at the firm Kobre & Kim just issued a big update on the class-action lawsuit against Ripple, which alleges the company violated state and federal laws by selling XRP as an unregistered security.
According to Jake Chervinsky, who is well-known in the crypto community for his insight on blockchain-related cases and exchange-traded funds, Ripple will likely issue a motion to dismiss, when the time is right.
“The Ripple securities class action took a step forward this week, as the court set a schedule for roughly the next year of litigation. Here’s an update on where the case stands, what’s next, and when we’ll answer the question that never dies: ‘is XRP a security?’
As a refresher, the plaintiffs in the case allege that XRP is an unregistered security and that Ripple broke the law by issuing and selling it to the public. The plaintiffs say every class member – meaning every XRP purchaser – is entitled to a refund, plus compensatory damages.
Eventually, I expect Ripple will vigorously deny those allegations in court, but they actually haven’t had to file a substantive response yet. If you can believe it, the case was tied up for almost nine months just to decide whether it should be in state or federal court.
Last month, the federal court denied the plaintiffs’ motions to return to state court, so the case will now stay federal. At the time, I called this a ‘minor but meaningful’ victory for Ripple. It’s a battle they fought hard to win, but a small one at the start of a long war.
So, let’s talk about what battles are coming next. The court’s order this week set a schedule for the next three phases of litigation:
- Appointing lead plaintiff and lead counsel
- Re-filing a consolidated complaint
- Responding to the complaint
First, the Court ordered the plaintiffs to post a public notice of the case, which they did on Wednesday. The notice tells all potential class members out there – again, all XRP purchasers – that they can seek appointment as lead plaintiff, if they want.
The Court’s order gives potential class members 60 days – until May 20 – to file motions for appointment as lead plaintiff and for approval of their selection of lead counsel. The Court will then need some time to make a decision. Nothing else will happen before it does.
One side note that you might find either funny or frustrating, depending on your view of Ripple and XRP: check out how one of the law firms representing the named plaintiffs described the case in its notice… You can tell the lawyers are getting heated already.
Second, after lead plaintiff and lead counsel are appointed, the Court’s order gives them 45 days to file a new consolidated complaint asserting every legal violation that the class believes Ripple committed. At the very earliest, the consolidated complaint will be due in July.
Third, after the consolidated complaint is filed, Ripple will *finally* have to submit a substantive response. I expect that will be a motion to dismiss, arguing that the allegations in the complaint – even if true – don’t add up to a violation of the securities laws.
The court’s order gives Ripple at least 45 days after the consolidated complaint is filed to submit a response. That means it could be September before Ripple has to say anything of substance on the record. I’ve mentioned that class actions move at a glacial pace, right?
Oh, and we’re not quite done. If Ripple files a motion to dismiss, the Court’s order gives the lead plaintiff another 45 days to file an opposition brief, and then gives Ripple 30 more days to file a reply. So, the court might not even consider the motion until November.
There’s no way to predict how long the court might take to resolve a motion to dismiss once fully briefed, but I’d say three to six months is a decent estimate. Point is, I won’t be surprised if there’s a motion to dismiss still pending before the court one year from today.
In the meantime, the court could order the start of discovery, a process where both sides gather evidence from each other using devices like interrogatories, depositions and requests for documents. No, it’s not public. You don’t get to live stream depositions of Ripple execs.
Unless Ripple wins a motion to dismiss, discovery will go on for a long time. In class actions, discovery usually takes more than a year to complete. I won’t bother telling you all the stuff that happens during and after discovery. I’ll cover it if and when the times comes.
What about settlement? In theory, the case could settle at any moment. But in reality, class actions usually don’t settle until after the class certification stage. Pre-certification settlements have limited upside for both parties, so I’d be surprised if this settles soon.
So, when will we know if XRP is a security? Probably not in 2019 unless Ripple decides to change course and voluntarily treat XRP as a security (which I sincerely doubt). Class actions are good for many things, but quickly resolving complex securities issues isn’t one of them.
And here’s your reminder that the SEC has nothing to do with this case. The SEC’s enforcement lawyers are probably following along to see how the case develops, but they aren’t directly involved and they can do whatever they want regardless of what happens in the class action.
I’ve also heard some of you ask how much money the plaintiffs are spending. I don’t know about this particular case, but in general, many law firms take class actions like this on contingency – no win, no fee – so it could be that the plaintiffs aren’t paying anything at all.
Others have asked whether the plaintiffs are being bankrolled by a shady cabal of conspiratorial enemies trying to take down Ripple. Uh, probably not. There is such thing as third-party litigation funding, but that’s generally a calculated investment, not a malicious attack.
For the record, I’m not writing about this case because I have a particular view on Ripple or XRP. I see this as one of the leading securities cases in the industry, so I think it’s important for all of us to follow. And courts are where the law is *really* made.”
Dogecoin Price Maintains its Value as DOGE/BTC Notes Solid Gains
As far as the top cryptocurrency markets are concerned, it remains to be seen which one, if any, will move up later today. As of right now, everything in the top 10 looks rather bleak, primarily because Bitcoin is bleeding value all over the place. However, there is always a chance some positive momentum occurs because of this trend. When even the Dogecoin price is in the red, however, the future is not looking too great.
Dogecoin Price Momentum is Worrisome
In the world of cryptocurrency, there is a lot of information to keep an eye on. Not all markets will follow the world’s leading cryptocurrency’s price trend, which is always a welcome sight. When it comes to Dogecoin, however, it would appear there is always some adverse momentum. It is worth keeping an eye on Dogecoin at all times, as it is usually an indicator as to what will happen to the other markets over the next few hours. Right now, that trend is not necessarily too promising.
Over the past 24 hours, Dogecoin has been somewhat successful in terms of maintaining its current value. Although a 0.12% drop isn’t too bothersome whatsoever, one has to keep in mind that in itself does not look promising whatsoever. There is a 1.12% gain in DOGE/BTC at this time, however, which could easily offset the minor USD losses over the coming hours. That is, assuming this DOGE/BTC trend will remain in place, which may prove to be rather difficult to maintain.
On social media, it would appear something interesting is happening. Although the Dogecoin community still wants to get DOGE listed on Coinbase in the near future, it seems these demands are growing less common. This may be a sign of the community giving up on this project as a whole, although it is also possible Dogecoin doesn’t even need Coinbase in the first place. The recently listed coins on this exchange have not done too great in the price department, after all.
Please add #dogecoin
— Doge Love [Broke Philanthropist] (@DavidLoveDoge) March 21, 2019
In the world of Dogecoin, there is never a lack of memes and funny images. Dogecoin Memes has shared a nice meme this time around and one that shows how one’s Dogecoin memes folder will usually trump that of Windows or the regular memes one. Images like these will keep the community entertained for some time to come, although it is evident it will not impact the price whatsoever. A good meme a day keeps the depression away, though.
— Dogecoin Memes (@DogecoinMemes) March 21, 2019
The day can only get better when there is not just one, but two separate Dogecoin memes in one day. Siyana would like to see Dogecoin pump, rather than dump. While that is to be expected from traders and cryptocurrency enthusiasts, it seems unlikely there will be any major price increase in the near future. However, with the strong DOGE/BTC gains in place, there is a chance there won’t be much of a dump either throughout the rest of the day.
— siyana.io (@IoSiyana) March 21, 2019
As is usually the case when it comes to Dogecoin, this market is even more predictable than most others out there. Since it doesn’t appear to rely on Bitcoin’s momentum all that much, there is a good chance things will turn out to be rather interesting moving forward. How high or low the value will go throughout the day and over the weekend, is very difficult to predict. After all, there is usually a lot of surprising price momentum during the weekend.
Electroneum Price Lacks Upward Momentum Despite M1 Phone Launching on Amazon UK
In the cryptocurrency world, there is never a guarantee for success whatsoever. Despite the potential any individual market may display at any given moment, there is not necessarily a direct correlation with the price. In the case of the Electroneum price, the current momentum doesn’t seem to affect the value in a positive manner. That is a bit unusual, although there is a chance things will turn around sooner or later.
Electroneum Price is in an Odd Place
In this volatile industry, it is always pertinent to keep the bigger picture in mind. While Bitcoin Maximalists might not necessarily pay much attention to the thousands of altcoins on the market, the rest of the community is looking at things from a different perspective. As far as Electroneum is concerned, there are plenty of recent developments which could effectively yield a much higher price in the near future. So far, the market hasn’t responded to these developments in a promising manner, though.
Over the past 24 hours, the Electroneum price has dropped by 0.34% in USD value and lost 1.5% in Bitcoin value. While the current levels of $0.006437 or 157 Satoshi are still pretty solid, it seems to be a matter of time until something changes. One would expect ETN’s increased trading volume of nearly $13m to help matters move along, but that is not the case at this time. It is a sign of how the recent Huobi listing is helping this market gain more liquidity.
The big news of the week is how the Electroneum M1 smartphone can now be purchased from Amazon in the United Kingdom. Although the device isn’t available through Amazon in most other countries as of yet, there is a good chance it will come to the US and other major regions fairly soon. In terms of ensuring ETN gains mass adoption, this turn of events could have some very interesting consequences moving forward.