Canada's Central Bank Urges Government To Draft Crypto Law Before It Grows Anymore

Senior Deputy Governor of the Canadian Central Bank, Carolyn Rogers. (photo: Bank of Canada)

JAKARTA – The crypto market has experienced a significant decline in recent weeks, therefore the Canadian central bank urges related parties to immediately discuss crypto regulations.

According to the Bank of Canada's Senior Deputy Governor, Carolyn Rogers, the central bank will not have to wait any longer to draft crypto regulations. Rogers hopes that crypto regulations can be established soon before cryptocurrencies get “bigger.”

"This is an area that is still small, but growing very rapidly," said Carolyn Roger, quoted by Reuters.

“And it (cryptocurrency) is largely unregulated,” she added. "We don't want to wait until it gets much bigger before we implement regulatory controls."

Amid the collapse of the crypto market, the cryptocurrency market cap has fallen below 1 trillion US dollars after Monday's massive sell-off. According to data from Bitcoin.com Markets, the total market cap of the entire crypto market is around 918 billion US dollars at the time of writing.

Reporting from Bitcoin.com News, according to Canada's central bank, the share of Canadians owning bitcoin more than doubled to 13 percent in 2021 from 5 percent in 2020.

"Like any asset whose price spikes, people see an opportunity for quick profits," Rogers said.

“Our concern is that they may not understand the risks. They may not even understand that it's not a regulated area."

The Bank of Canada's senior deputy governor stressed that the crypto industry needs to be regulated. "It's a bit like a banking asset, a bit like a capital market," she explained.

However, Rogers points out that there are challenges in regulating cryptocurrencies.

"One of the challenges is to figure out how they fit into the current regime, and if they don't, how do we adjust the regimes so they will fit," said a Bank of Canada official.