Canadian Securities Regulator Outlines New Rules For Crypto Trading Platforms
- The new regulation is set to foster innovation while protecting investors.
- Crypto trading platforms that fail to initiate the new registration process by 19 April could face enforcement action.
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The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published the notice on 29 March, outlining the way securities law requirements can be tailored for crypto asset trading platforms (CTP).
According to an official press release, the 56-page document provides an overview of the key risks related to CTPs and other areas where securities laws can be applied. The notice also includes a detailed description of the process for submitting an application to the CSA and IIROC.
The goal of the new regulation is to create a balance between fostering innovation in Canada’s capital markets and protecting investors. CSA’s guidance is an answer to a substantial increase in the number of crypto-asset platforms in the country and represents the culmination of a regulatory framework published in 2019.
Louis Morisset, the chair and president of the CSA, said that CTPs should contact their local securities regulators to discuss the new registration process. The guidance in the notice details steps operators need to take to comply with existing securities legislation, he explained.
Morisset also warned that all CTPs, including those based outside of Canada, are expected to comply with Canadian securities legislation. CTPs that fail to contact the Ontario Securities Commission (OSC) or other involved regulators by 19 April could face enforcement action, he added.
- Bybit is the latest exchange following Binance and OKX to announce its departure from the Canadian market due to “recent regulatory development”.
- Canadian nationals will no longer be able to open new accounts starting Wednesday, while existing users have until 30 September to withdraw their assets from the platform.
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- Canadian customers who have no funds in their Paxos accounts will have their accounts automatically closed on 9 May, while the rest will be disabled on 2 June.
- Paxos is not the only company to be leaving Canada, with cryptocurrency exchanges dYdX and OKX saying they will wind down their businesses in the country due to “new regulations”.
- Crypto exchange OKX noted that its decision to cease operations in Canada and exit the country was due to “new regulations”.
- New users will be unable to open accounts starting 24 March, while all other users have until 22 June to close trading positions and withdraw their crypto and fiat assets.