I INTRODUCTION TO THE LEGAL AND REGULATORY FRAMEWORK -

Canada currently has no comprehensive framework governing the regulation of digital assets. Securities and derivatives regulation has emerged as the main regulatory instrument in Canada and is primarily a matter of provincial jurisdiction. While the securities regulatory framework is largely streamlined and harmonised across Canada, legislative jurisdiction in the area of derivatives is divided between the federal and provincial governments and is significantly more fragmented. Jurisdiction is also exercised by the federal government through federal banking and financial services regulation and anti-money laundering legislation, which requires registration of certain virtual currency exchange or transfer services as money service businesses.