Jeremy Koven, president of Canada-based cryptocurrency exchange CoinSmart, recently shed light on the differential path crypto regulations infer in different countries. This puts a fresh perspective on the US cryptocurrency landscape, where regulatory clarity and tax policies still are much-debated topics, causing hesitation among crypto firms and users.
Koven underlined how promoting cryptocurrency in areas such as casinos and sports betting felt more natural in Canada compared to the United States given their more favourable crypto regulations. He criticized the division of crypto regulations between different US bodies such as the Securities and Exchange Commission (SEC), leading to a fragmented and somewhat confusing landscape for businesses operating in the area. In Canada, he remarked, “Taxes can be sorted out. That’s country to country, of course. United States takes the stance that every time you make a purchase you are selling your crypto, but other countries are a little bit more favorable right now.”
CoinSmart recently merged with WonderFi and Coinsquare, thus creating one of Canada’s largest crypto trading platforms with over 1.6 million users. This move came post Coinsquare’s acquisition of CoinSmart in September 2022.
Koven’s stance sheds light upon some of the regulatory issues that may be hindering the growth of crypto in the United States. While the SEC of US has yet to approve any spot bitcoin exchange-traded fund, Canada launched one in February 2021, leading the way for other companies to follow suit. Consequently, the People’s Trust Company recently expanded its services for Canadian users. However, exchanges like Binance have pulled out from the Canadian market due to regulatory concerns.
Ironically, while companies and investors world-over navigate through the nascent world of crypto regulations, the market sends mixed signals. A case in point is the recently exposed ‘Swirllend Scam’ on Coinbase’s new Layer 2 (Base), where the platform was hit by a scam in the very first operational week.
In conclusion, the differential perspectives offered by Koven and the recent scam stress on the need for achieving a harmonious balance in crypto regulations. Regulatory impasses should be resolved while ensuring safety, to facilitate growth and acceptance of cryptocurrency on an international landscape.
Source: Cointelegraph
