TORONTO, March 1, 2023 /CNW/ – In recent years, the world of finance has witnessed rapid growth in digital currencies, and stablecoins are one of the most recent innovations. A stablecoin is a digital currency pegged to a stable asset like the fiat currency, ensuring its stability in terms of price and value. This has made stablecoins an attractive option for investors, traders, and businesses looking for a stable alternative to volatile cryptocurrencies like Bitcoin.
With the growth of stablecoins comes the need for regulatory compliance with national policies in different countries. Different nations have different approaches to regulating digital currencies, and stablecoin providers must understand and comply with these policies to ensure their long-term success. For example, in the United States and Canada, stablecoins are considered a type of security and must comply with federal securities laws. This means that stablecoin providers must register with the Securities and Exchange Commission (SEC) and comply with regulations such as Anti-Money Laundering (AML) and Know Your Customer (KYC) laws. In the European Union, the stablecoin industry is subject to the same regulations as traditional financial institutions, including the EU’s Payment Services Directive (PSD2) and the General Data Protection Regulation (GDPR). These regulations aim to ensure the security of customer funds, prevent money laundering and terrorist financing, and protect the privacy of customer data. In Asia, stablecoin providers must comply with regulations set forth by each country’s central bank.
To comply with national policies, stablecoin issuers must follow applicable laws and regulations and any other financial services regulations that may be relevant to their operations. They may also require licenses or certifications from relevant government agencies, such as central banks.
In some countries, stablecoin issuers may require to implement measures to protect customer information and ensure the privacy of transactions, such as data protection laws. To comply with these regulations, stablecoin issuers may need to implement strict security measures, such as encryption and secure storage of data.
It’s important to note that the regulatory landscape for stablecoins is rapidly evolving, and compliance requirements may vary depending on the country in which they are issued or used.
How does CADT stablecoin by Blockchain Venture Capital Inc. comply with Canadian law?
The CADT stablecoin is a tokenized security backed by fiat. CADT is the first cryptocurrency in Canada that complied with provincial securities laws, where each CADT is fully supported in Canadian Dollars (CAD) and held in custody by a federally regulated Canadian financial institution. The CADT stablecoin was developed exclusively to facilitate cashless transactions and strive to simplify money-to-money transfers. And since CADT is fully supported by the unique BVC Chain technology as anchored 1:1 to the Canadian fiat in circulation today. Such backing affords the CADT to serve as a medium of exchange and a storage of value in the blockchain ecosystem.
In conclusion, the growth of stablecoins has opened up new possibilities in finance. Many countries are also improving their regulatory compliance with national and international policies. By understanding and following these policies, stablecoin providers can ensure the stability and security of their platforms and continue to meet the demands of a rapidly growing market. As the first compliant stablecoin in Canada, the CADT stablecoin will take the lead in the industry and gradually realize substantial compliance in various parts of the world.
About Blockchain Venture Capital Inc.
Blockchain Venture Capital Inc. (CSE: BVCI) is a Canadian company incorporated according to the laws of Ontario and a registered Money Service Business under FINTRAC. It is an innovator in Distributed Ledger technology and blockchain, focusing on the research, development, and application of blockchain technology. Ontario Securities Commission (OSC) acknowledged BVCI for the CADT stablecoin issuance and officially announced it as a public company on the Canadian Securities Exchange on August 12, 2022. The company developed BVC-Chain, a public, decentralized Blockchain built on open blockchain technologies and leveraging the security, efficiency, and transparency they provide. BVCI also developed BvcPay-a mobile app developed on BVC-Chain that functions as a digital asset wallet, blockchain explorer, and CADT stablecoin, a digital asset 100 percent backed by the Canadian dollar.
We aim to build a platform to connect novel cryptocurrency and traditional financial instruments with fintech solutions to facilitate and promote individual and business activities through a fast and secure blockchain ecosystem. See more details at www.bvcpay.com
SOURCE Blockchain Venture Capital Inc.
For further information: Blockchain Venture Capital Inc., Richard Zhou, President and CEO, Email: [email protected], Phone: +1.647.404.8966