Carolyn Wilkins, who worked at the Bank of Canada until December 2020, said in an op-ed that Canada needed a regulatory framework for the crypto market to prevent risks to investors and the financial system. (Financial Post)

Talking point: “We need to sort out what differentiates a bandit from a law-abiding pioneer to achieve the benefits of financial innovation for households and businesses, and avoid the build up of systemic risk,” Wilkins wrote. Her call to action came the same day that the Financial Stability Board, on which Wilkins served while at the BoC, published a report which identified vulnerabilities in crypto markets and noted that risks could escalate quickly. Governments around the world have ramped up their scrutiny of the industry in recent months, especially in the U.S., where the SEC has scrutinized businesses including Caisse-backed Celsius. In Canada, regulators have launched a crackdown and last week Conservative MP Michelle Rempel Garner introduced a private member’s bill that would require the finance minister to develop a framework to govern and encourage growth of crypto assets.