Bitvo CEO says many bad actors have been removed from the market.
Pamela Draper, president and CEO of crypto platform Bitvo, has commented on the trend of companies leaving the Canadian market due to regulatory conditions.
During an interview with Cointelegraph at the Collision conference in Toronto on June 29, Draper stated that despite the announcements of Binance, dYdX, and Bybit leaving Canada in 2023, the country is one of the few jurisdictions where a regulatory framework is already in place. She highlighted the ongoing lawsuits faced by Binance and Coinbase in the United States by the Securities and Exchange Commission as examples.
“In Canada, at least you have a framework to follow, where you know the guidelines,” Draper said. “You may not agree with every aspect of it, but you know the sandbox.”
She also mentioned that some companies operating in other countries may not be willing to invest in Canada due to the regulatory framework. In 2021, Canadian regulators imposed requirements for crypto firms to register as an “investment dealer” or “regulated marketplace” within two years and be in compliance by 2023.
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“Complying with the regulatory regime requires a lot of work and money, such as setting up the necessary staff, infrastructure, and legal fees to obtain a license from the securities commission.”
In June 2022, now-defunct crypto exchange FTX announced its plans to acquire Bitvo as part of its expansion into Canada. However, the deal fell through in November when FTX filed for bankruptcy and former CEO Sam Bankman-Fried was subsequently arrested in the Bahamas.
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According to Draper, she initially wasn’t concerned about reports regarding FTX’s liquidity in early November 2022 because many saw the exchange as a leading example of pushing for regulation. She referenced FTX’s $400 million funding round and its multibillion-dollar valuation at the time.
“The fact that FTX was involved in any wrongdoing seemed inconsistent with what Sam was publicly saying and the narrative surrounding our merger acquisition,” Draper explained. “If we had been acquired, we would have definitely been affected by the bankruptcy proceedings. […] I don’t think anyone expected FTX to fall from grace the way they did.”
“Many of the bad actors have been removed from the market, and I believe that the remaining ones are, on balance, more good than bad.”
Bybit, Binance, dYdX, OKX, and Paxos are among the firms that have announced scaling back or exiting their operations in Canada. During the Collision conference, which took place from June 26 to June 29, Canadian lawmakers in the House of Commons released a report highlighting the advantages and potential of blockchain technology in various sectors.
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