Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Circle Becomes First Stablecoin to Meet Canadian VRCA Rules
Crypto Compliance | Dec 6, 2024
Image: USDC stablecoin
Circle Internet Group Inc., First Stablecoin Issuer to Meet Strict Canadian Listing Rules
Circle Internet Group Inc, announced by release that they are the first to meet Canada’s strict new rules for value-referenced crypto assets (VRCAs). These regulations are designed to make the stablecoin market safer and more transparent as it continues to grow.
What’s the Deal with VRCA Rules?
Stablecoins are becoming more prominent in Canada and the Canadian Securities Administrators (CSA) decided it was time to tighten the reins. The new VRCA rules required that stablecoin issuers prove that their coins are backed by real assets, operate transparently and meet strict security standards. In September 2024, the CSA extended the deadline to December 31, 2024 for platforms listing VRCA (stablecoins) to comply or they risk getting delisted from Canadian crypto platforms.
Circle's USDC Stablecoin Ticks Regulatory Boxes
Why does this matter? Well, if you’re a Canadian that uses stablecoins on Canadian crypto platforms, it means you’ll still have access to USDC after the deadline. Circle's compliance establishes them as a stablecoin leader in the space, and that they are serious about building trust, transparency and operating in a compliant manner. USDC is one of the most traded stablecoins globally, transacting billions of dollars every month. Stablecoins account for a large chunk of crypto activity in Canada.
See: “Crypto’s Back”, Stripe to Support On-Chain USDC Payments
While other stablecoin issuers like Tether Limited (USDT), Paxos Trust Company (PAX is now USDP) and TrustToken (TrustUSD) haven't yet announced compliance yet, and with the extended deadline of Dec 31, 2024 approaching, Circle's proactive approach sets a high bar for other players.
Closing Outlook
Circle’s USDC compliance with Canada's VRCA rules is a positive for Canada's crypto economy. Anticipate other stablecoin issuers to soon follow or risk being being delisted from Canadian crypto platforms.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
FintruX P2P Lending Ecosystem – Making Unsecured Loans Secure- Startup Canada Roadshow (Sep 12-Oct 2): Canadian Export Challenge
- OSC Charges Liquid Marketplace Executives with Fraud
- Inside the power struggle between big banks and fintechs to modernize financial services
- Vitalik “non-giver of ETH” Buterin just gave away $300,000 on Twitter
- Paul Geyer, BC Angel Investor of the Year 2010, Joins NCFA / VEC Vancouver Equity Crowdfunding Event May 21, 2014
Leave a Reply