Canada Regulates Cryptocurrency After Death of Quadriga CX Founder
When only one person knows a password to an unhackable platform and that person dies, it creates problems.
Sometimes accountability, decentralization and a network that's virtually un-hackable can be a BAD THING from a certain vantage point, yes? Well, no, until the one person with the password ends up dying, and he just happens to be the CEO of a well-known crypto-digital platform. Now thanks to the password going to the grave with him, there are literally $135MM in cryptocurrencies frozen and untouchable, much to the dismay of investors. There lies the problem:
Perhaps Cryptocurrency Is a Little Too Secure?
Truly that shouldn't be a 'problem'! But sadly it is. But thankfully the country of Canada has a way around this by developing a new set of rules for crypto trading that would account for unforeseen circumstances such as, well, death.
The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) recently announced moving forward with development of some brand-new regulations to tackle the rather novel features and risks associated with crypto platforms. And while such regulations may initially limit the technology, many experts are seeing the silver lining.
We'll finally see some flexibility and control, albeit perhaps a bit of a conundrum for a technology meant to be completely decentralized and without a middle entity, fully regulated by the blockchain. But something has to give: we really do need a balance. While a foundation makes it quite easy for people to break into the so-called "house," absolutely no foundation at all makes for a lack of direction and an absence of a boundary.
Weird analogy, yes, but you get some of the picture there -- we need some rules in order to help regulate the freedoms cryptocurrency provides, not simply because criminals may take advantage of it, but because upstanding citizens don't deserve to have to jump through hoops just to appreciate it.
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