Mogo Inc. – which owns 34 percent of Canada’s digital currency trading platform Coin Square – has announced that the latter firm is going to be regulated by the Investment Industry Regulatory Organization of Canada (IIROC) for investment dealer registration purposes.
Coin Square Will Be a Fully Regulated Crypto Platform
This means Coin Square is the first crypto-only platform registered through the organization. The move is being lauded by analysts everywhere who believe this is going to make crypto trading in Canada more legitimate and mainstream.
Regulation is something of a two-sided coin (pun intended). On one hand, many people don’t like the idea of crypto regulation because it goes against everything the digital currency space is about. When bitcoin first arrived over 13 years ago, there were many thoughts backing it up, a big one being that there would be no prying eyes or third parties interfering with people or their money, like what occurs in the world of modern-day banks.
There was a notion of financial freedom that rang true in the digital currency ring, and many felt they could go there to simply engage in transactions without having the government or financial institutions breathing down their necks. This is the foundation crypto was built upon.
However, there are those that feel some degree of regulation is necessary if people are going to avoid the pitfalls that have become so prominent in the space. Many believe that with cybertheft being the big problem it is, there needs to be some level of regulation in place so people can trade safely, and illicit actors receive the punishments they likely deserve.
The idea that customers of Coin Square will now be engaging in only regulated activities means they are being treated to the highest level of security the platform has to offer. The company is going to oversee all activity and make sure all customers and trades are fully compliant.
Mogo president and CFO Greg Feller said in an interview:
We commend the Coin Square team for achieving this important and value-driving milestone. We believe this registration helps them further differentiate from the competition and, when combined with the recently announced acquisition of Coin Smart, should position Coin Square well for future growth and long-term success.
Offering Safer Products
David Feller – CEO of Mogo – also stated:
Mogo was a pioneer in crypto in Canada, creating a simple way for Canadians to own bitcoin. We are proud of our history in this space and remain committed to providing our members with options to access this asset class. While the current and evolving regulatory environment means it’s no longer feasible for us to offer the Mogo Crypto product in its current form, we will continue to work with our regulators to incorporate a crypto trading offering within Mogo Trade in the future.