The Central Bank of Canada accelerates the legalization of cryptocurrency in the domestic market of the country
In connection with the increase in holders of crypto-assets, the head of the Central Bank of Canada, Carolyn Rogers, made a statement that the country’s authorities will move towards the legalization of digital currencies in the domestic market, the press service of the CB reports.
But, according to the Office of the Superintendent of Financial Institutions of Canada, the authorities will limit the investment limit in crypto-currencies for banks and insurance companies.
This decision was made in connection with the increasing cases of fraud with tokens and crypto-exchanges in order to ensure the safety of investors. The total amount of investments should not exceed 1% of the reserves of the insurer or the bank.
This decision will come into force in the second quarter of 2023. In addition, each Fin. the institution must notify the regulator about the amount of investment in digital assets, and they promise to control this moment as strictly as possible.
It is worth noting that the United States is now following the same path. The Federal Reserve sent out a formal request to all commercial banks in the country to notify it of their activities in the crypto sphere.