Authors
Partners
A joint initiative of the Rogers Cybersecure Catalyst and the Dais at TMU
Contributors
- Sam Andrey
- Karim Bardeesy
- Sumit Bhatia
- Zaynab Choudhry
- Charles Finlay
- Nina Rafeek Dow
- Yuan Stevens
June 2023
1
Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. [White paper]. https://bitcoin.org/bitcoin.pdf.
2
Bank of Canada. (2022). Financial System Review - 2022. Bank of Canada. https://www.bankofcanada.ca/2022/06/financial-system-review-2022/#Overview.
3
Reinicke, C. (2021, August 24). 1 in 10 people currently invest in cryptocurrencies, many for ease of trading, CNBC survey finds. CNBC. https://www.cnbc.com/2021/08/24/1-in-10-people-invest-in-cryptocurrencies-many-for-ease-of-trading.html.
4
Rossow, A. (2018, September 7). Stability in Volatile Markets: What You Need to Know about Stable Coins. Forbes. https://www.forbes.com/sites/andrewrossow/2018/09/07/stability-in-volatile-markets-what-you-need-to-know-about-stable-coins.
5
Bank of Canada. Central bank digital currency (CBDC). Bank of Canada. https://www.bankofcanada.ca/research/digital-currencies-and-fintech/projects/central-bank-digital-currency.
6
Browne, R. (2022, March 10). Trading in NFTs spiked 21,000% to top $17 billion in 2021, report says. CNBC. https://www.cnbc.com/2022/03/10/trading-in-nfts-spiked-21000percent-to-top-17-billion-in-2021-report.html.
7
Chow, A.R. (2022, December 21). Where did FTX’s Missing $8 Billion Go? Crypto Investigators Offer Clues. TIME. https://time.com/6243086/ftx-where-did-money-go.; U.S. Securities and Exchange Commission. (2022, December 13). SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX. https://www.sec.gov/news/press-release/2022-219.
8
Nicolle, E., Kharif, O., Ishmael, S. (2022, December 21). All The Ways That Crypto Broke in 2022. Bloomberg. https://www.bloomberg.com/graphics/2022-crypto-contagion-from-bitcoin-to-FTX.
9
Shukla, S. (2022, September 28). NFT Trading Volumes Collapse 97% From January Peak. BNN Bloomberg. https://www.bnnbloomberg.ca/nft-trading-volumes-collapse-97-from-january-peak-1.1824840.
10
See e.g., House of Commons. (2018). Don’t Block the Blockchain: How Canada can Guard against Money Laundering while Maintaining Global Competitiveness. https://www.ourcommons.ca/Content/Committee/421/FINA/Brief/BR10007367/br-external/IJWAndCoLtd-2018-09-17-Updated-Final-e.pdf.
11
Rauchs, M., Glidden, A., Gordon, B., Pieters, G., Recanatini, M., Rostand, F., Vagneur, K., Zhang, B. (2018). Distributed Ledger Technology Systems: A Conceptual Framework. University of Cambridge: Cambridge Centre for Alternative Finance. https://deliverypdf.ssrn.com/delivery.php?ID=523068119001022112010111070082091024031014039074069003068001078098007067064115097024025103012043047102119064075111096090097068044001045019044068023028010075100124120091020012017072121009102073002111070124093002124107103105073109012003084068021092067117&EXT=pdf&INDEX=TRUE on page 15.
12
See e.g. Bertagnoli, L. (2022, August 25). 20 Blockchain Platforms Driving the Industry. Builtin. https://builtin.com/blockchain/blockchain-platforms.
13
About. (n.d.). Bitcoin Core. https://bitcoincore.org/en/about.
14
All transactions can be viewed online. See Bitcoin. (n.d.). Blockchain.com. https://www.blockchain.com/explorer?view=btc.
15
Quote from this piece: Dwork, C., Naor, M. (2001). Pricing via Processing or Combatting Junk Mail. Advances in Cryptology - Crypto '92. CRYPTO 1992. Lecture Notes in Computer Science, vol. 740. (pp.139-147). Springer. doi:10.1007/3-540-48071-4_10.
16
See also: Interestingly, the proof of work system was originally proposed to prevent spam email and denial-of-service (DDoS) attacks on websites. Finney, H. (n.d.). Reusable Proofs of Work. Nakamoto Institute. https://nakamotoinstitute.org/finney/rpow/index.html.
17
Walker, G. (n.d.). How does Bitcoin work?. Learn me a bitcoin. https://learnmeabitcoin.com.
18
The most common are proof of work and proof of stake, but other variations include delegated proof of stake, proof of activity, proof of authority, proof of burn, proof of capacity or proof of space, proof of elapsed time, proof of history, and proof of importance. What is Consensus? A Beginner’s Guide. (2022, May 13). Crypto.com. https://crypto.com/university/consensus-mechanisms-explained.
19
Napoletano, E., and Broverman, A. (2022, July 12). Proof of Stake Explained. Forbes. https://www.forbes.com/advisor/ca/investing/cryptocurrency/proof-of-stake.
20
Platt, M., Sedlmeir, J., Platt, D., Xu, J., Tasca, P., Vadgama, N., Ibañez, J.I. (2021). The Energy Footprint of Blockchain Consensus Mechanisms Beyond Proof-of-Work. IEEE. doi:10.1109/QRS-C55045.2021.00168.
21
Chow, A. (2022, September 7). Why the Ethereum Merge Matters. TIME. https://time.com/6211294/ethereum-merge-preview.; The Merge. (2022, September 15). Ethereum.org. https://ethereum.org/en/upgrades/merge.
22
Guegan, D. (2017). Public Blockchain versus Private blockchain. HAL Open Science, 1-6. https://halshs.archives-ouvertes.fr/halshs-01524440/document.
23
Jayachandran, P. (2017, May 31). The difference between public and private blockchain. IBM. https://www.ibm.com/blogs/blockchain/2017/05/the-difference-between-public-and-private-blockchain.
24
Schinckus, C., Nguyen, C.P., Chong, F.H.L. (2021). Are Bitcoin and Ether Affected by Strictly Anonymous Crypto-Currencies? An Exploratory Study. Economics, Management and Financial Markets 16(4), 9-27. doi:10.22381/emfm16420211.
25
Fauzi, P., Meiklejohn, S., Mercer, R., Orlandi, C. (2018). Quisquis: A New Design for Anonymous Cryptocurrencies. In Advances in Cryptology - ASIACRYPT 2019, 25th International Conference on the Theory and Application of Cryptology and Information Security. (pp 649-678). doi:10.1007/978-3-030-34578-5_23.
26
Shin, D. and Ibahrine, M. (2020). The socio-technical assemblages of blockchain system: how blockchains are framed and how the framing reflects societal contexts. Digital Policy, Regulation and Governance 22(3), 245-263. https://www.emerald.com/insight/content/doi/10.1108/DPRG-11-2019-0095/full/html#abstract.
27
When a blockchain project is “forked”, this splits the blockchain into two separate networks. Intentional forks and hard forks are used to implement new consensus mechanisms, and require nodes to be upgraded to new consensus mechanisms, respectively.
28
White, M. (2022, January 9). Blockchain-based systems are not what they say they are. Molly White. https://blog.mollywhite.net/blockchains-are-not-what-they-say.; Ore, J. (2016, August 28). How a $64M hack changed the fate of Ethereum, Bitcoin’s closest competitor. CBC News. https://www.cbc.ca/news/science/ethereum-hack-blockchain-fork-bitcoin-1.3719009.
29
Hirsh, S., Alman, S., Lemieux, V., Meyer, E.T. (2019). Blockchain: One emerging technology - so many applications. Proceedings of the Association for Information Science and Technology 55(1), 691-693. doi:10.1002/pra2.2018.14505501083.
30
Lemieux, V. (2017). Blockchain and Distributed Ledgers as Trusted Recordkeeping Systems: An Archival Theoretic Evaluation Framework. Future Technologies Conference (FTC) 2017. https://www.researchgate.net/profile/Victoria-Lemieux/publication/317433591_Blockchain_and_Distributed_Ledgers_as_Trusted_Recordkeeping_Systems_An_Archival_Theoretic_Evaluation_Framework/links/593aa6450f7e9b3317f4d860/Blockchain-and-Distributed-Ledgers-as-Trusted-Recordkeeping-Systems-An-Archival-Theoretic-Evaluation-Framework.pdf.
31
Jackson, B. (2019, May 1). Canada’s ‘big 5’ banks launch blockchain-based digital identity service with SecureKey. IT World Canada. https://www.itworldcanada.com/article/canadas-big-5-banks-launch-blockchain-based-digital-identity-service-with-securekey/417406.
32
Lemieux, V. (2020). Caught in the middle? Strategic information governance disruptions in the era of blockchain and distributed trust. Records Management Journal 30(3), 301-324. doi:10.1108/RMJ-09-2019-0048.
33
Nabben, K. (2021). Blockchain Security as “People security”: Applying Sociotechnical Security to Blockchain Technology. Frontiers in Computer Science. doi:10.3389/fcomp.2020.599406.; Thylin, T., Duarte, M.F.N. (2019). Leveraging blockchain technology in humanitarian settings - opportunities and risks for women and girls. Gender & Development 2, 317-336. doi:10.1080/13552074.2019.1627778.; Cheesman, M. (2022, June 8). Blockchain for Refugees. Medium.com. https://points.datasociety.net/blockchain-for-refugees-a46b41594eee.
34
Blandin, A., Cloots, A.S., Hussain, H., Rauchs, M., Saleuddin, R., Allen, J.G., Zhang, B.Z., Cloud, K. (2019). Global Crypto-asset Regulatory Landscape Study. University of Cambridge Faculty of Law Research Paper No. 23. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3379219.
35
Crypto Assets. (n.d.). Canadian Securities Administrators. https://www.securities-administrators.ca/investor-tools/Crypto-assets.
36
What is Crypto Gaming? (2023, January 23). Bitbuy. https://bitbuy.ca/guides/what-is-crypto-gaming.
37
Houben, R. and Snyers, A. (2018). Cryptocurrencies and blockchain: Legal context and implications for financial crime, money laundering and tax evasion. European Parliament, Policy Department for Economic, Scientific And Quality of Life Policies. https://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf.
38
This report uses the terms ‘exchange’ and ‘trading platform’ interchangeably.
39
Paz, J. (2022, March 16). The Best Global Crypto Exchanges. Forbes. https://www.forbes.com/sites/javierpaz/2022/03/16/the-best-global-crypto-exchanges.
40
Woods, J. (2018, March 18). Crypto Exchanges: Custodial vs. Non-Custodial vs. Decentralized. Medium.com. https://medium.com/@jacobrobertwoods/crypto-exchanges-custodial-vs-non-custodial-vs-decentralized-3d1d04cf205.
41
See also Non-custodial crypto exchange. (n.d.). PC Mag. https://www.pcmag.com/encyclopedia/term/non-custodial-crypto-exchange.
42
Woods, J. (2018, March 18). Crypto Exchanges: Custodial vs. Non-Custodial vs. Decentralized. Medium.com. https://medium.com/@jacobrobertwoods/crypto-exchanges-custodial-vs-non-custodial-vs-decentralized-3d1d04cf205.
43
White, M. (2022, May 20). Predatory Community. Molly White. https://blog.mollywhite.net/predatory-community/.; Financial Conduct Authority (2019). How and why consumers buy Crypto-assets. FCA. https://www.fca.org.uk/publication/research/how-and-why-consumers-buy-Crypto-assets.pdf. ; Balutel, D., Felt, M., Nicholls, G., Voia, M.C. (2022). Bitcoin Awareness, Ownership and Use: 2016-20. Bank of Canada. doi:10.34989/sdp-2022-10. Qureshi, K. and Zaman, T. (2022). Social Media Engagement and Cryptocurrency Performance. Cornell University. https://arxiv.org/pdf/2209.02911.pdf.
44
Mackenzie, S. (2022). Criminology Towards the Metaverse: Cryptocurrency Scams, Grey Economy and the Technosocial. The British Journal of Criminology 62(6), 1537-1552. doi:10.1093/bjc/azab118.
45
Financial Conduct Authority (2019). How and why consumers buy Crypto-assets. FCA. https://www.fca.org.uk/publication/research/how-and-why-consumers-buy-Crypto-assets.pdf.
46
Balutel, D., Felt, M., Nicholls, G., Voia, M.C. (2022). Bitcoin Awareness, Ownership and Use: 2016-20. Bank of Canada. doi:10.34989/sdp-2022-10.
47
Ibid.
48
These findings were taken from a representative survey of 2,000 Canadian residents aged 16 and older, conducted in October 2022. These survey findings contributed to a published report released in March 2023. See more: Andrey, S. (2023). Survey of Online Harms in Canada. Leadership Lab. https://www.ryersonleadlab.com/survey-of-online-harms-in-canada.
49
For more information on methodology, see https://www.ryersonleadlab.com/survey-of-online-harms-in-canada.
50
Schecter, B. (2022, November 16). How regulation slowed FTX’s growth, limiting the toll of its collapse in Canada. Financial Post. https://financialpost.com/fp-finance/cryptocurrency/regulation-slowed-ftx-growth-canada-limiting-toll-crypto-collapse; Rolfe, K. (2023, February 28). FTX includes more than 30 Canadian firms in sprawling creditors list. The Logic. https://thelogic.co/news/ftx-includes-more-than-30-canadian-firms-in-sprawling-creditors-list.
51
Goerzen, M., Watkins, E.A., Lim, G. (2019). Entanglements and Exploits: Sociotechnical security as an analytic framework. 9th USENIX Workshop on Free and Open Communications on the Internet (FOCI ‘19). https://www.usenix.org/conference/foci19/presentation/goerzen.
52
De Gregorio, I. (2022, July 12). The event that could change crypto forever is here. Medium. https://medium.datadriveninvestor.com/the-event-that-could-change-crypto-forever-is-here-9e7edf9c8647#:~:text=On%20June%20the%2013th%2C%20Mt,us%20later%20in%20the%20story.
53
Kaartemo, V. and Kramer, M. (2020). The sources of cybersecurity threats in cryptocurrency. In J.M. Munoz & M. Frenkel (Eds.), The Economics of Cryptocurrencies. Routledge: Taylor Francis. doi:10.4324/9780429200427.
54
Guggenberger, T., Schlatt, V., Schmid, J., and Urbach, N. (2021). A Structured Overview of Attacks on Blockchain Systems. Twenty-fifth Pacific Asia Conference on Information Systems, Dubai, UAE, 2021. https://www.researchgate.net/profile/Nils-Urbach/publication/352733786_A_Structured_Overview_of_Attacks_on_Blockchain_Systems/links/60d5747a299bf1ea9ebade14/A-Structured-Overview-of-Attacks-on-Blockchain-Systems.pdf.; Fernandez, R. (2022, June 28). Pentagon finds concerning vulnerabilities on blockchain. TechRepublic. https://www.techrepublic.com/article/pentagon-finds-concerning-vulnerabilities-on-blockchain.
55
Weaver, N. (2018). Risks of Cryptocurrencies. Communications of the ACM 61(6), 20-24. doi:10.1145/3208095.; Guggenberger, T., Schlatt, V., Schmid, J., and Urbach, N. (2021). A Structured Overview of Attacks on Blockchain Systems. Twenty-fifth Pacific Asia Conference on Information Systems, Dubai, UAE, 2021. https://www.researchgate.net/profile/Nils-Urbach/publication/352733786_A_Structured_Overview_of_Attacks_on_Blockchain_Systems/links/60d5747a299bf1ea9ebade14/A-Structured-Overview-of-Attacks-on-Blockchain-Systems.pdf.; Financial Stability Board. (2023). The Financial Stability Risks of Decentralised Finance. https://www.fsb.org/wp-content/uploads/P160223.pdf.
56
Hassan, A., Mas’ud, M.Z., Shah, W.M., Abdul-Latip, S.F., Ahmad, R., Ariffin, A., and Yunos, Z. (2020). A Systematic Literature Review on the Security and Privacy of the Blockchain and Cryptocurrency. OIC-CERT Journal of Cyber Security 2(1), 1-17. https://www.oic-cert.org/en/journal/pdf/2/1/211.pdf.
57
Hassan, A., Mas’ud, M.Z., Shah, W.M., Abdul-Latip, S.F., Ahmad, R., Ariffin, A., and Yunos, Z. (2020). A Systematic Literature Review on the Security and Privacy of the Blockchain and Cryptocurrency. OIC-CERT Journal of Cyber Security 2(1), 1-17. https://www.oic-cert.org/en/journal/pdf/2/1/211.pdf.; Houben, R. and Snyers, A. (2018). Cryptocurrencies and blockchain: Legal context and implications for financial crime, money laundering and tax evasion. European Parliament, Policy Department for Economic, Scientific and Quality of Life Policies. https://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf.
58
Schipor, G. (2019). Risks and Opportunities in the Cryptocurrency Market. “Ovidius” University Annals, Economic Sciences Series XIX(2). https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2020/02/Section%20V/36.pdf.; Perkins, D. (2020). Cryptocurrency: The Economics of Money and Selected Policy Issues. Congressional Research Service. https://www.everycrsreport.com/files/20200409_R45427_8469ceaa641685c78bf188b7e5fdbb23004507a4.pdf.
59
Sai, A.R., Buckley, J., Le Gear, A. (2019). Privacy and Security Analysis of Cryptocurrency Mobile Applications. IEEE: Conference on Mobile and Secure Services. doi:10.1109/MOBISECSERV.2019.8686583.
60
Cyber security & Infrastructure Security Agency. (2021, February 17). Alert (AA21-048A): Apple Jeus: Analysis of North Korea’s Cryptocurrency Malware. CISA. https://www.cisa.gov/uscert/ncas/alerts/aa21-048a.; Communications Security Establishment. (2022). National Cyber Threat Assessment 2023-2024. Canadian Centre for Cyber Security. https://cyber.gc.ca/sites/default/files/ncta-2023-24-web.pdf.
61
Sai, A.R., Buckley, J., Le Gear, A. (2019). Privacy and Security Analysis of Cryptocurrency Mobile Applications. IEEE: Conference on Mobile and Secure Services. doi:10.1109/MOBISECSERV.2019.8686583.
62
Hassan, A., Mas’ud, M.Z., Shah, W.M., Abdul-Latip, S.F., Ahmad, R., Ariffin, A., and Yunos, Z. (2020). A Systematic Literature Review on the Security and Privacy of the Blockchain and Cryptocurrency. OIC-CERT Journal of Cyber Security 2(1), 1-17. https://www.oic-cert.org/en/journal/pdf/2/1/211.pdf.
63
Shin, D. and Rice, J. (2022). Cryptocurrency: A panacea for economic growth and sustainability? A critical review of crypto innovation. Telematics and Informatics 71. doi:10.1016/j.tele.2022.101830.
64
Hasanova, H., Baek, U., Shin, M., Cho, K., Kim, M. (2019). A survey on blockchain cyber security vulnerabilities and possible countermeasures. Int J Network Mgmt. doi:10.1002/nem.2060.; Saad, M., Spaulding, J., Nijilla, L., Kamhoua, C., Shetty, S., Nyang, D., Mohaisen, D. (2020). Exploring the Attack Surface of Blockchain: A comprehensive survey. IEEE Communications Surveys & Tutorials 22(3). doi:10.1109/COMST.2020.2975999.
65
Abhishta, A., Joosten, R., Dragomiretskiy, S., Nieuwenhuis, B. (2019). Impact of Successful DDoS Attacks on a Major Crypto-Currency Exchange. 2019 27th Euromicro International Conference on Parallel, Distributed and Network-Based Processing (PDP). doi:10.1109/EMPDP.2019.8671642.
66
Conti, M., E, S.K., Lal, C., Ruj, S. (2017). A Survey on Security and Privacy Issues of Bitcoin. IEEE. https://arxiv.org/pdf/1706.00916.pdf.; Fanti, G. and Viswanath, P. (2017). Deanonymization in the Bitcoin P2P Network. 31st Conference on Neural Information Processing Systems (NIPS 2017). https://dl.acm.org/doi/pdf/10.5555/3294771.3294901.
67
Hassan, A., Mas’ud, M.Z., Shah, W.M., Abdul-Latip, S.F., Ahmad, R., Ariffin, A., and Yunos, Z. (2020). A Systematic Literature Review on the Security and Privacy of the Blockchain and Cryptocurrency. OIC-CERT Journal of Cyber Security 2(1), 1-17. https://www.oic-cert.org/en/journal/pdf/2/1/211.pdf.
68
Goerzen, M., Watkins, E.A., Lim, G. (2019). Entanglements and Exploits: Sociotechnical Security as an Analytic Framework. 9th USENIX Workshop on Free and Open Communications on the Internet (FOCI ‘19). https://www.usenix.org/conference/foci19/presentation/goerzen.
69
Ibid.
70
Ibid.
71
Northcott, P. (2022, May 10). Police help victim of crypto-fraud get money back. Royal Canadian Mounted Police. https://www.rcmp-grc.gc.ca/en/gazette/police-help-victim-crypto-fraud-get-money-back.
72
White, M. (2022, January 22). Abuse and harassment on the blockchain. Molly White. https://blog.mollywhite.net/abuse-and-harassment-on-the-blockchain.
73
Levy, K. and Schneier, B. (2020). Privacy threats in intimate relationships. Journal of cyber security 6(1). doi:10.1093/cybsec/tyaa006.
74
Biggs, J. (2017, October 17). Bitcoin engineer Jameson Lopp SWATted by angry crypto fans. TechCrunch. https://techcrunch.com/2017/10/17/bitcoin-engineer-jameson-lopp-swatted-by-angry-crypto-fans.
75
Davies, R. (2022, May 8). ‘Crypto muggings’: thieves in London target digital investors by taking phones. The Guardian. https://www.theguardian.com/technology/2022/may/08/crypto-muggings-thieves-in-london-target-digital-investors-by-taking-phones#:~:text=The%20crypto%20muggings%20took%20place,with%20the%20threat%20of%20violence.
76
Northcott, P. (2022, May 10). Police help victim of crypto-fraud get money back. Royal Canadian Mounted Police. https://www.rcmp-grc.gc.ca/en/gazette/police-help-victim-crypto-fraud-get-money-back.
77
Vergolina, V. (2022, September 12). Tornado Cash: What it is and why it’s been sanctioned by Treasury. Bloomberg UK. https://www.bloomberg.com/news/articles/2022-09-12/tornado-cash-what-it-is-and-why-it-s-been-sanctioned-by-treasury; Reuters. (2022, August 8). US sanctions Tornado Cash over fears of aiding North Korean hackers. The Guardian. https://www.theguardian.com/technology/2022/aug/08/us-sanctions-tornado-cash-north-korea-hackers.
78
Oliver, J. (2022, September 19). The lawless world of crypto scams. Financial Times. https://www.ft.com/content/5987649e-9345-4eae-a4b8-9bfb0142a2ab.
79
Fletcher, E. (2022, June 3). Reports show scammers cashing in on crypto craze. Federal Trade Commission. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze.
80
Waterloo Regional Police. (2022, April 21). WRPS Warn Residents about Cryptocurrency Investment Scams. Waterloo Regional Police. https://www.wrps.on.ca/en/news/wrps-warn-residents-about-cryptocurrency-investment-scams.aspx.
81
Ibid.
82
Shufelt, T. (2023, March 14). Crypto hype is down, but crypto fraud is proliferating. The Globe and Mail. https://www.theglobeandmail.com/investing/markets/inside-the-market/article-crypto-hype-is-down-but-crypto-fraud-is-proliferating.
83
Lu, C., Batista, D., Hamouda, H., Lemieux, V. (2020). Consumers’ intentions to adopt blockchain-based personal health records and data sharing: focus group study. JMIR formative research 4(11). doi:10.2196/21995.; Fröhlich, M., Gutjahr, F., Alt, F. (2020). Don’t lose your coin! Investigating Security Practices of Cryptocurrency Users. DIS ‘20: Proceedings of the 2020 ACM Designing Interactive Systems Conference. doi:10.1145/3357236.3395535.; Dai, F., Shi, Y., Meng, N., Wei, L., Ye, Z. (2017). From Bitcoin to cyber security: A comparative study of blockchain application and security issues. 2017 4th International Conference on Systems and Informatics (ICSAI). doi:10.1109/ICSAI.2017.8248427.
84
Mackenzie, S. (2022). Criminology Towards the Metaverse: Cryptocurrency Scams, Grey Economy and the Technosocial. The British Journal of Criminology 62(6), 1537-1552. doi:10.1093/bjc/azab118.
85
Domenico, M.D. and Baronchelli, A. (2019). The fragility of decentralised trustless socio-technical systems. EPJ Data Science 8(2). doi:10.1140/epjds/s13688-018-0180-6.
86
Weaver, N. (2018). Risks of Cryptocurrencies. Communications of the ACM 61(6), 20-24. doi:10.1145/3208095.
87
Kamps, J. and Kleinberg, B. (2018). To the moon: defining and detecting cryptocurrency pump-and-dumps. Crime science 7(18). doi:10.1186/s40163-018-0093-5.
88
Mackenzie, S. (2022). Criminology Towards the Metaverse: Cryptocurrency Scams, Grey Economy and the Technosocial. The British Journal of Criminology 62(6), 1537-1552. doi:10.1093/bjc/azab118.
89
Tidy, J. (2022, October 3). Kim Kardashian pays $1.26m over crypto ‘pump and dump’. BBC. https://www.bbc.com/news/technology-63116235.; U.S. Securities and Exchange Commission. (2018, November 29). Two Celebrities Charged with Unlawfully Touting Coin Offerings. [Press release]. https://www.sec.gov/news/press-release/2018-268.
90
Q.ai. (2022, September 20). What Really Happened to LUNA Crypto? Forbes. https://www.forbes.com/sites/qai/2022/09/20/what-really-happened-to-luna-crypto/?sh=b5a40c4ff12c.
91
Shifflett, S. and Jones, C. (2018, May 17). Buyer Beware: Hundreds of Bitcoin Wannabes Show Hallmarks of Fraud. The Wall Street Journal. https://www.wsj.com/articles/buyer-beware-hundreds-of-bitcoin-wannabes-show-hallmarks-of-fraud-1526573115.
92
Betz, B. (2022, November 17). FTX Ventures was a disorganized mess with missing financials, bankruptcy documents say. CoinDesk. https://www.coindesk.com/business/2022/11/17/ftx-ventures-was-a-disorganized-mess-with-missing-financials-bankruptcy-documents-say.; Elder, B. and Scaggs, A. (2022, November 17). The FTX bankruptcy filing in full (updated). Financial Times. https://www.ft.com/content/c236d6f9-da5a-4da7-8dc8-5cd450dfe39d.
93
Schneier, B. (2022, June 24). On the Dangers of Cryptocurrencies and the Uselessness of Blockchain. Schneier on Security. https://www.schneier.com/blog/archives/2022/06/on-the-dangers-of-cryptocurrencies-and-the-uselessness-of-blockchain.html.; Brennecke, M., Guggenberger, T., Sachs, A., Schellinger, B. (2022). The Human Factor in Blockchain Ecosystems: A Sociotechnical Framework. Wirtscharftsinformatik 2022 Proceedings. https://aisel.aisnet.org/wi2022/finance_and_blockchain/finance_and_blockchain/3.
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Gencer, A.E., Basu, S., Eyal, I., Renesse, R., Sirer, E.G. (2018). Decentralization in Bitcoin and Ethereum Networks. Financial Cryptography and Data Security: 22nd International Conference, FC 2018, Nieuwpoort, Curaçao. doi:10.1007/978-3-662-58387-6_24.
95
Weaver, N. (2018). Risks of Cryptocurrencies. Communications of the ACM 61(6), 20-24. doi:10.1145/3208095.
96
See, for instance, Balaji Srinivasan’s writing about how blockchain technologies could be used to create fully decentralized, digital communities while radically subverting existing political systems and state institutions. Srinivasan, B. (2022). The Network State: How To Start a New Country. Amazon Kindle.
97
Goodkind, A.L., Jones, B.A., Berrens, R.P. (2020). Cryptodamages: Monetary value estimates of the air pollution and human health impacts of cryptocurrency mining. Energy Research & Social Science 59. doi:10.1016/j.erss.2019.101281.
98
Mora, C., Rollins, R.L., Taladay, K., Kantar, M.B., Chock, M.K., Shimada, M., Franklin, E.C. (2018). Bitcoin emissions alone could push global warming above 2°C. Nature Climate Change 8, 931-933. doi:10.1038/s41558-018-0321-8.
99
Truby, J., Brown, R., Dahdal, A., Ibrahim, I. (2022). Blockchain, climate damage, and death: Policy interventions to reduce the carbon emissions, mortality, and net-zero implications of non-fungible tokens and Bitcoin. Energy Research & Social Science 88. doi:10.1016/j.erss.2022.102499.
100
Canada Energy Regulator. (2018, August 22). Market Snapshot: Crypto-currency mining is booming in Canada. Here is why. CER. https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2018/market-snapshot-crypto-currency-mining-is-booming-in-canada-here-is-why.html.
101
Milano, A. (2018, February 6). BIS Chief Slams Bitcoin As Ponzi Scheme and Threat to Central Banks. CoinDesk. https://www.coindesk.com/markets/2018/02/06/bis-chief-slams-bitcoin-as-ponzi-scheme-and-threat-to-central-banks.
102
Li, B., Sugimoto, N. (2023, January 18). Crypto Contagion Underscores Why Global Regulators Must Act Fast to Stem Risk. IMF Blog. https://www.imf.org/en/Blogs/Articles/2023/01/18/crypto-contagion-underscores-why-global-regulators-must-act-fast-to-stem-risk.
103
Gilbert, S. (2022). Crypto, web3, and the Metaverse. Bennett Institute for Public Policy Cambridge. https://www.bennettinstitute.cam.ac.uk/wp-content/uploads/2022/03/Policy-brief-Crypto-web3-and-the-metaverse.pdf.
104
Southurst, J. (2021, July 23). Blockchain attacks and reorgs: Experiences from the past. Coingeek News. https://coingeek.com/blockchain-attacks-and-reorgs-experiences-from-the-past.
105
Financial and Consumer Services Commission. (2022, May 9). Canadian Anti-Fraud Centre Bulletin: CAFC and WPS Recover $17000 in Bitcoin. https://fcnb.ca/en/news-alerts/canadian-anti-fraud-centre-bulletin-cafc-and-wps-recover-17000-in-bitcoin#:~:text=On%20March%2017th%2C%202022%2C%20the,both%20CAFC%20and%20local%20police.; Northcott, P. (2022, May 10). Police help victim of crypto-fraud get money back. RCMP. https://www.rcmp-grc.gc.ca/en/gazette/police-help-victim-crypto-fraud-get-money-back.; United States Department of Justice. (2022, November 7). U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure and Conviction in Connection with Silk Road Dark Web Fraud. U.S. Attorney’s Office, Southern District of New York. https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction.
106
Ontario Securities Commission. (2018). Downfall of Quadriga (2018). https://www.osc.ca/quadrigacxreport/downfall-of-quadriga.html.
107
Derk, C., Bogle, J., Gomez, I. (2022, February 22). Cryptocurrency outlook in Canada - Where we are and where we are going. BLG. https://www.blg.com/en/insights/2022/02/cryptocurrency-outlook-in-canada-where-we-are-and-where-we-are-going.; Sia Partners. (2021, October 14). Canadian Securities Regulations for Crypto Businesses. Sia Partners. https://www.sia-partners.com/en/news-and-publications/from-our-experts/canadian-securities-regulations-crypto-businesses.; Grant, S., Lim, K., Peters, M. (2022). Blockchain & Cryptocurrency Laws and Regulations 2022. Global Legal Insights. https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/canada.; Government of Canada. (2022, November 16). Statement to entities engaging in Crypto-asset activities or crypto-related services. https://www.canada.ca/en/financial-consumer-agency/news/2022/11/statement-to-entities-engaging-in-Crypto-asset-activities-or-crypto-related-services0.html.
108
Sia Partners. (2021, October 14). Canadian Securities Regulations for Crypto Businesses. Sia Partners. https://www.sia-partners.com/en/news-and-publications/from-our-experts/canadian-securities-regulations-crypto-businesses.; Hills, N. (2021, December 20). Canada: A Legal Guide to Cryptocurrency in Canada.
109
Derk, C., Bogle, J., Gomez, I. (2022, February 22). Cryptocurrency outlook in Canada - Where we are and where we are going. BLG. https://www.blg.com/en/insights/2022/02/cryptocurrency-outlook-in-canada-where-we-are-and-where-we-are-going.
110
Canadian Securities Administrators. (2017). Staff Notice 46-307. Cryptocurrency Offerings. https://www.asc.ca/-/media/ASC-Documents-part-1/Regulatory-Instruments/2018/10/5366029-CSA-Staff-Notice-46-307-Cryptocurrency-Offerings.ashx.; Canadian Securities Administrators. (2018). Staff Notice 46-308. Securities Law Implications for Offerings of Tokens. https://www.asc.ca/-/media/ASC-Documents-part-1/Regulatory-Instruments/2018/10/5404970-CSA-Staff-Notice-46-308.ashx.
111
Canadian Securities Administrators. (2021). CSA Staff Notice 51-363 - Observations on Disclosure by Crypto Assets Reporting Issuers. https://www.osc.ca/sites/default/files/2021-03/csa_20210311_51-363_observations-disclosure-Crypto-asset.pdf.; Canadian Securities Administrators. (2021). Staff Notice 21-330. Guidance for Crypto-Trading Platforms: Requirements relating to Advertising, Marketing and Social Media Use. https://www.osc.ca/sites/default/files/2021-09/csa_20210923_21-330_crypto-trading-platforms.pdf.; Grant, S., Lim, K., Peters, M. (2022). Blockchain & Cryptocurrency Laws and Regulations 2022. Global Legal Insights. https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/canada.
112
Canadian Securities Administrators. (2016). CSA Regulatory Sandbox. https://www.securities-administrators.ca/resources/regulatory-sandbox/.; Government of Alberta. (2022). Innovating the finance sector. https://www.alberta.ca/innovating-the-finance-sector.aspx.
113
See Clements, R. (2022). Commissioned Paper: Cryptocurrency: Challenges to Conventional Governance of Financial Transactions. Public Order Emergency Commission. https://publicorderemergencycommission.ca/files/documents/Policy-Papers/Cryptocurrency-Challenges-to-Conventional-Governance-of-Financial-Transactions-Clements.pdf. He highlights a number of other CSA Staff Notices (21-327, 21-329, 21-330, 21-332, 46-307, 46-308) that further establish regulatory guidance for Crypto-asset trading and exchanges, addressing CTP pre-registration requirements to protect investors, compliance and risk identification, advertising, marketing and social media requirements, the application of securities law to tokens, and other related areas such as the distribution of crypto-investment funds, derivatives on Crypto-assets, and custodial controls.
114
Canadian Centre for Cyber Security. (2021, September). Ransomware: How to prevent and recover (ITSAP.00.099). Government of Canada. https://www.cyber.gc.ca/en/guidance/ransomware-how-prevent-and-recover-itsap00099.; Canadian Centre for Cyber Security. (2018). National Cyber Threat Assessment 2018. Government of Canada. https://www.cyber.gc.ca/en/guidance/national-cyber-threat-assessment-2018.; Public Safety Canada. (2015) Organized Crime. https://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/2015-h001/index-en.aspx.
115
Communications Security Establishment. (2022). National Cyber Threat Assessment 2023-2024. https://cyber.gc.ca/sites/default/files/ncta-2023-24-web.pdf.
116
Ontario Securities Commission. (2023, February 22). Canadian securities regulators strengthen oversight, enhance expectations of crypto asset trading platforms operating in Canada. https://www.osc.ca/en/news-events/news/canadian-securities-regulators-strengthen-oversight-enhance-expectations-Crypto-asset-trading.
117
Government of Canada. (2022, November 16). Statement to entities engaging in Crypto-asset activities or crypto-related services. https://www.canada.ca/en/financial-consumer-agency/news/2022/11/statement-to-entities-engaging-in-Crypto-asset-activities-or-crypto-related-services0.html.
118
Financial Consumer Agency of Canada. (2021). Digital currency. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html.
119
Grant, S., Lim, K., Peters, M. (2022). Blockchain & Cryptocurrency Laws and Regulations 2022. Global Legal Insights. https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/canada.; Arsenault, J. (2018, July 16). Hydro-Québec allowed to charge cryptocurrency miners increased rates. Montreal Gazette. https://montrealgazette.com/news/local-news/hydro-quebec-allowed-to-charge-cryptocurrency-miners-increased-rates.
120
Department of Finance. (2022, November 3). Government consults Canadians to advance key priorities. Government of Canada. https://www.canada.ca/en/department-finance/news/2022/11/government-consults-canadians-to-advance-key-priorities.html.
121
Government Ontario. (2021). Capital Markets Act - Consultation Draft. Ontario’s Regulatory Registry. https://www.ontariocanada.com/registry/view.do?postingId=38527&language=en; Victor, J. (2022, August 26). “Startups push back on proposal to give Ontario regulators new authority over crypto.” The Logic. https://thelogic.co/news/startups-push-back-on-proposal-to-give-ontario-regulators-new-authority-over-crypto.
122
Ontario Securities Commission. (2022, March 11). Fraud Prevention Month: Canadian Securities Administrators encourages Canadians to invest in asking questions before investing in crypto assets. https://www.osc.ca/en/news-events/news/fraud-prevention-month-canadian-securities-administrators-encourages-canadians-invest-asking.
123
European Commission. (2020, September 24). Digital finance package. European Commission. https://finance.ec.europa.eu/publications/digital-finance-package_en.
124
Directive 2014/65/EU. On markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0065.
125
European Council. (2022, June 30). Digital finance: agreement reached on European Crypto-assets regulation (MiCA) [Press release]. https://www.consilium.europa.eu/en/press/press-releases/2022/06/30/digital-finance-agreement-reached-on-european-Crypto-assets-regulation-mica.; Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020PC0593.
126
Ibid.
127
Ibid.
128
Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020PC0593.
129
European Council. (2022, November 28). Digital finance: Council adopts Digital Operational Resilience Act [Press release]. https://www.consilium.europa.eu/en/press/press-releases/2022/11/28/digital-finance-council-adopts-digital-operational-resilience-act.
130
Regulation 2022/2554. On digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) 909/2014 and (EU) 2016/1011. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022R2554.
131
Regulation 2022/858. On a pilot regime for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No 600/2014 and (EU) No 909/2014 and Directive 2014/65/EU. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022R0858.
132
The White House. (2022, September 16). FACT SHEET: White House Releases First-Ever Comprehensive Framework for Responsible Development of Digital Assets. The White House. https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/16/fact-sheet-white-house-releases-first-ever-comprehensive-framework-for-responsible-development-of-digital-assets.
133
Dewey, J. (2022). Blockchain & Cryptocurrency Laws and Regulations 2022 | USA. Global Legal Insights. https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/usa.; O’Neal, S. (2018, May 26). SEC, CFTC, IRS And Others: A Guide to US Regulating Bodies. CoinTelegraph. https://cointelegraph.com/news/sec-cftc-irs-and-others-a-guide-to-us-regulating-bodies.
134
Digital Commodities Consumer Protection Act of 2022, S.4760, 117th Congress, 2022. https://www.congress.gov/bill/117th-congress/senate-bill/4760/text.; Lummis-Gillibrand Responsible Financial Innovation Act, S.4356, 117th Congress, 2022. https://www.congress.gov/bill/117th-congress/senate-bill/4356/text.
135
Stablecoin Transparency Act, S.3970, 117th Congress, 2022. https://www.congress.gov/bill/117th-congress/senate-bill/3970/all-info.; Versprille, A. and Weinberger, E. (2022, July 20). Stablecoins Face US Scrutiny as House Lawmakers Craft Rules. Bloomberg UK. https://www.bloomberg.com/news/articles/2022-07-20/stablecoins-face-scrutiny-as-lawmakers-aim-to-advance-plan.
136
U.S. Securities and Exchange Commission. (2022, May 3). SEC Nearly Doubles Size of Enforcement’s Crypto Assets and Cyber Unit [Press release]. https://www.sec.gov/news/press-release/2022-78.
137
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency. (2023, February 23). Agencies issue joint statement on liquidity risks resulting from Crypto-asset market vulnerabilities [Press release]. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230223a.htm.
138
U.S. Department of the Treasury. Action Plan to Address Illicit Financing Risks of Digital Assets. https://home.treasury.gov/system/files/136/Digital-Asset-Action-Plan.pdf.
139
Morton, H. (2022, June 7). Cryptocurrency 2022 Legislation. National Conference of State Legislatures. https://www.ncsl.org/research/financial-services-and-commerce/cryptocurrency-2022-legislation.aspx.
140
Relevant state bills include: Substitute House Bill No. 5320, An Act Concerning Virtual Currency, February Session, (Connecticut 2022).; House Bill No.1638, An Act to repeal section 574.105, RSMo, and to enact in lieu thereof one new section relating to the offense of money laundering, with penalty provisions, 2nd Regular Session, 101st General Assembly, (Missouri 2022).; Bill No. S08838, An Act to amend the general business law, in relation to requiring certain disclosures in advertisements involving virtual tokens, U.S.C. § 350-b-2. (2022).
141
Bill No. HB0074, Special purpose depository institutions, 65th Legislature of the State of Wyoming. (2019).; Bill No. HB0027, Select committee on blockchain, technology and innovation, 65th Legislature of the State of Wyoming. (2020).; Bill No. HB0057, Financial technology sandbox, 65th Legislature of the State of Wyoming. (2019).
142
Financial Stability Board. (2023). The Financial Stability Risks of Decentralised Finance. https://www.fsb.org/wp-content/uploads/P160223.pdf.
143
G20. (2023). G20 Chair’s Summary and Outcome Document, First G20 Finance Ministers and Central Bank Governors Meeting. https://www.g20.org/content/dam/gtwenty/gtwenty_new/document/1st%20FMCBG%20Chair%20Summary.pdf.
144
International Organization for Standardization. (2016). Blockchain and distributed ledger technologies (ISO/TC 307). https://www.iso.org/committee/6266604.html.
145
Digital Governance Standards Institute. Standards in Digital Assets and Nonfungible Tokens. https://ciostrategycouncil.com/standards/find-a-standard/standards-in-digital-assets.
146
Antipolis, S. (2018, December 18). ETSI Launches new Industry Specification Group on blockchain. ETSI. https://www.etsi.org/newsroom/press-releases/1473-2018-12-press-etsi-launches-new-industry-specification-group-on-blockchain.; Deshpande, A., Stewart, K., Lepetit, L., Gunashekar, S. (2017). Distributed Ledger Technologies/Blockchain: Challenges, opportunities and the prospects for standards. British Standards Institution. https://www.bsigroup.com/en-GB/Innovation/dlt.; Standards Australia. Blockchain. Standards Australia. https://www.standards.org.au/engagement-events/sectors/blockchain#:~:text=Standards%20Australia%20is%20playing%20an,a%20public%20and%20secure%20manner.
147
World Economic Forum. (2020). Global Standards Mapping Initiative: An overview of blockchain technical standards. https://www3.weforum.org/docs/WEF_GSMI_Technical_Standards_2020.pdf.