In Canadian Court, currently, a high-money playing legal actions took place about Cryptocurrency. The amusing behaving that leads the lawsuit to almost refusing the gullible, and they make the matter to come into lights that the digital currency needs the proper regulation policy.
The new first came out in February that QuadrigarCX, the Canadian cryptocurrency is in need of mortgage holder protection, leaving 115,000 clients in financial oblivion that trusted the company to preserve the deposit of their Bitcoins and other digital tokens that have a value of around US$250 million.
The company’s founder and CEO Gerald Cotton suddenly died in India during his vacation and the situation arises to save the company from bankruptcy. Generally, when a founder untimely dies, and he/she doesn’t tell anyone about the vault’s only password. So their traders will still make their deposit funds in the accounts.
The Quadriga, the CEO Cotton was the only person, who knew the key to that encrypted vault file that is also known as cold storage, where the company holds all the deposits made by the clients. Now, without that only key, no one can open it.
The Nova Scotia Supreme Court is going through all the things and questions about this case. But the one question remains still in everyone’s mind is that “How can one bad commitment related to key custody of the vault, now make 100,000 people suffer for their deposits?”
The only answer to making proper regulations to control the cryptocurrency market. Either the founders like Cotton will make their clients suffer without any proper regulations. The Canadian securities regulations would have kept an eye on the equity capital raised from the traders by Cotton. But Quadriga is an exchange company, the maintenance of deposits and providing the exchange of normal cash and cryptocurrencies in trade for ownership shares is comes under the regulatory vacuum.
The Office of Superintendent of Financial Institutions (OFSI), Canada does watch over the banks that take daily dollar deposits. Some might say that OFSI is meant to be adapted to cover the working of digital exchange like Quadriga, even these institutions are not official banks and deposits are non-conservation. The watching over put those answerable and unfortunate events like Quadriga will not happen next. The proper regulations will also go to stand as safety from hackers and cybercriminals.
The thing that attracts people to invest in crypto is its working without any regulations and imposing these regulations will going to make people alarmed about their investments. The normal public will become cautious about imposing regulations in the cryptocurrency and only people who love to take risks will trade.
In Canada, many institutions are working that people are cautious of and hate them like gambling, alcohol, tobacco, and marijuana. But the calculation is that implying the regulation of illegal activities, makes them move to the black market, where the danger will increase. No one can shield, Canadian from possible danger, mainly when it is financial sectors. The advice is to not compensate cryptocurrency traders against losses that will go to arise from the dangers, like beating that some fortune finder has taken since Bitcoin costing dive from stratospheric.