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Louis Roy, President of Catallaxy, commented in the media on the lack of guidance surrounding cryptocurrency exchange platforms.
In this highly publicized case in early February 2019, Raymond Chabot Grant Thornton’s partner expressed in several media outlets that “this event highlights the extent to which governance, regulation and internal control are needed in this sector of activity. Currently, it is not monitored at all”.
In an interview with L’heure du monde, broadcast on Radio-Canada, Louis stated that presently, there is no firm law on virtual currency exchange platforms.
“If the regulations applicable to financial institutions had been in effect, investors wouldn’t be in this situation. Their assets would have been held by a custodian, that is, a third party charged with safekeeping the assets of the clients on the exchange platform.”
Since 2014, Canadian and European authorities, namely the G20, have been developing new international regulations on the proceeds of crime (money laundering) and terrorist financing. Louis Roy insists on the fact that it is crucial to standardize regulation in both the law and the definitions attributed to cryptocurrencies.
“Under the law, cryptocurrency is considered a currency. However, from a tax point of view, it is considered property, so there are still numerous inconsistencies between the laws and we need to ensure that the public is protected.”
A guest of Anne-Marie Dussault’s on the 24/60 show broadcast on RDI, Louis pointed out the importance of informing investors about the current lack of internal control and the risks of investing in cryptocurrency.
“At Catallaxy, this is exactly what we promote: implementing governance and auditing in the world of cryptocurrency.”
Louis highlighted all of the advantages of blockchain technology, the first use of which is currently for virtual currency.
On Phare Ouest, broadcast on Radio-Canada and hailing from the Vancouver region, Louis reiterated: “I think there has to be a wake-up call in this activity sector. If we want the industry to listen, there need to be regulations that protect investors and savers. There is some regulation, but it needs to be adjusted.”
You can also read Louis Roy’s comments on Conseiller.ca and in Le Devoir on February 6 and Le Devoir on February 9.
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