Canada’s Crypto Review Triggers Worries of Regulatory Overkill

Canadian cryptocurrency firms are urging the federal government not to stifle economic opportunities as authorities embark on an industry-wide review to rewrite financial and security laws governing the troubled sector.

At the same time, they are also calling for more government oversight and protections for issues like cryptocurrency key security and deposit insurance in the wake of the FTX debacle to help the industry flourish.

“It’s a delicate balancing act,” Steven Bie, chief compliance officer at Toronto-based financial software company VirgoCX Inc., said in a statement. “Finding the right balance could result in significant investments and job growth.”

The ...