Crypto assets have kept the Ontario Securities Commission busy. The regulator announced a crackdown in the spring of 2021, giving cryptocurrency-trading platforms a deadline to start the process of registering as investment dealers. A year and a half later, the landscape looks a lot different for Canadian crypto investors. And OSC CEO Grant Vingoe isn’t done, calling arguments for regulating the crypto industry differently from other financial services “completely misguided.”

The sector has professionalized, registered crypto-trading platforms have become attractive acquisition targets, most large foreign platforms have barred Ontario residents and the OSC has pursued enforcement action against a handful that continued offering their services without registering. At Toronto’s Economic Club of Canada today, Vingoe reflected on that process and the work that remains.

Where we’re at now: The OSC’s focus has been on companies that offer crypto assets for sale and trade, but the sector’s investor-protection issues reach far beyond that. The summer’s crash saw crypto-lending firms go bankrupt, a major stablecoin and decentralized finance protocol collapse and more scrutiny of the interconnected and opaque nature of corporate relationships in the sector.

While these issues may appear to be new, Vingoe said he believes crypto assets and the wider industry can be governed by the same principles regulators apply to traditional finance. He said the OSC must act whenever something falls under its jurisdiction, “and the vast majority of crypto-based entities clearly do.”

Where he’s steering us: Vingoe said he would like to see crypto-trading platforms offer more advisory functions like those seen in traditional finance, assessing the suitability of investments for clients based on their goals and circumstances. He also said he’d like platforms to take a more discerning approach to listing tokens—“Social media hype shouldn’t be the criteria.” Ultimately, Vingoe said it would be good if Ontarians invested less money in crypto and more in traditional securities. He expressed concern about the economic effect of so much investment in “largely speculative” assets, as well as the effect on individuals’ financial health. “There’s only a limited amount of high-risk capital that a retail portfolio can appropriately withstand,” he said.

The Ontario Crypto Commission? Vingoe said the OSC doesn’t have a dedicated crypto office yet, but engages a “really large team” across multiple departments. He said the regulator’s executive team continues to make crypto a top commitment. “Sometimes I actually think we’re becoming a crypto regulatory agency,” he said.