• The Canadian Securities Administration (CSA) released a notice requiring crypto exchanges that plan to operate nationwide to pre-register within 30 days.
• This process includes segregating crypto assets held on behalf of Canadian clients and suspending offering margin, credit, or other forms of leverage trading to Canadian users.
• Exchanges will also have to stop offering stablecoins until written consent is secured from the CSA.
Canada Requires Crypto Exchange Pre-Registration
The Canadian Securities Administration (CSA) has issued a notice requiring crypto exchanges that plan to operate nationwide in Canada to pre-register within 30 days. The applicants must separate assets held for local clients, restrict margin and leverage trading, and cease the sale of stablecoins without permission from the CSA.
Segregation of Assets Held
The pre-registration process requires applicants to segregate any crypto assets held on behalf of Canadian clients, as well as suspend offering margin, credit or other forms of leveraged trading for their clients in Canada.
Stablecoin Restrictions
Exchanges will not be allowed to offer stablecoins without prior written approval from the CSA. This measure is intended to protect consumers by ensuring that only safe investments are being made available in the market.
Risk Awareness
The CSA reminds Canadians that investing in cryptocurrency comes with an „elevated“ level of risk which may not be suitable for all investors. It is important for investors to understand these risks before engaging in any kind of investing activities involving cryptocurrency and digital assets.
Conclusion
This new regulation by the CSA is meant to further protect consumers and ensure safety when engaging in cryptocurrency investment activities within Canada’s borders. It will be interesting to see how this affects the industry moving forward and if other countries follow suit with similar regulations regarding cryptocurrencies and digital assets.