On Wednesday, the Canadian Securities Administrators (CSA) published a notice with enhanced regulatory guidelines around “investor protection commitments” for cryptocurrencies and mandating registering crypto exchanges.
According to the official press release, the crypto asset trading platforms (CTPs) operating in Canada must provide a pre-registration undertaking with the country’s securities regulatory within the next 30 days and initiate a full registration process.
The pre-registration undertaking would include enhanced expectations regarding the custody and segregation of client crypto assets and prohibiting the offering of margin or leveraged crypto products. Further, the Canadian regulator prohibits the exchanges from facilitating the purchase and deposits of stablecoins.
The crackdown on stablecoins by Canadian regulators was initiated last year when the CSA labeled such cryptocurrencies “securities and/or derivatives.” Exchanges need the written consent of the CSA to offer stablecoins.
“Recent insolvencies involving several crypto asset trading platforms highlight the tremendous risks associated with trading crypto assets, particularly when conducted on unregistered platforms based outside of Canada,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission.
Apparently, feds in Canada came down on the provinces, who came down on securities regulators to…
