The Investment Industry Regulatory Organization of Canada (IIROC) has set up a working group to develop a potential regulatory response to blockchain technology and digital assets.

The IIROC is a national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. It set out its priorities for 2019 in a new notice dated June 25.

The IIROC noted that the rise of financial technology (FinTech), blockchain, and digital assets, among other things has transformational implications for markets, investors, Dealers and overall industry infrastructure.

“The potential application of blockchain technology is poised to dramatically alter the very ecosystem that underpins the capital markets. Digital assets such as cryptocurrencies are examples of blockchain applications that have already begun to impact the capital markets in significant ways, as potential direct or indirect investments, or in the form of initial coin offerings, cryptocurrency exchanges, etc.,” the IIROC said in its notice.

“To help us keep pace with this fast-evolving area, we have formed a working group that will build on IIROC’s knowledge and recommend a potential regulatory response.”

The working group will also liaise with other Canadian regulators and stakeholders, to ensure the regulatory response is well aligned and consistent.