Cryptocurrency platforms that request registration in Canada must agree to stricter regulations in the country, including bans on margin trading and leverage.
Companies must also keep the assets of Canadian customers separate from their own operations, under expanded terms the summary by the Canadian Securities Administrators (CSA) on Monday.
Crypto companies were told in August that they needed to submit a Pre-Registration Undertaking (PRU) to operate while full registration was pursued. The deadline by which the PRUs should be received has not yet been announced but they will be sent to the platforms “soon,” the CSA statement said.
But in light of what the CSA called “recent developments in the crypto market,” the PRU will bind platforms to an expanded set of rules and requirements.
The CSA said: “Cryptocurrency trading platforms that make these commitments agree to comply with the expanded terms which will include, among other things, requirements to hold assets of Canadian clients with an appropriate custodian and segregate those assets from the platform’s own operations, as well as prohibit the offering of margin or leverage.” for any Canadian customer.
Canada Cryptocurrency Campaign
As part of Monday’s announcement, the CSA reiterated its position that crypto assets are highly speculative.
“Even with the adoption of these measures, crypto assets or financial products related to crypto assets are high-risk investments,” the statement said. “These risks may result from, among other things, cryptocurrency trading platform non-compliance with registration requirements or obligations, crypto-industry entrapment, bankruptcy, hacking, price volatility, and uncertain value propositions for individual assets.”
Canadian authorities have taken a largely skeptical view of cryptocurrencies. Prime Minister Justin Trudeau Attack opponents for promoting “shady and reckless economic ideas” regarding cryptocurrencies, while the country’s central bank warned against it bitcoin And other tokens are not a method”withdrawal from inflation. “
At the beginning of the year, the government expanded Anti-terrorism legislation To block Bitcoin donations to the so-called “Freedom Caravan” in protest of Covid restrictions.
Meanwhile, securities regulators have cracked down on unregistered companies and called in large platforms Like KuCoin And the binance by name for not obtaining permission.
But none of this has stopped local pension funds from suffering some of the biggest explosions in cryptocurrency this year, with Caisse de Dépôt invested $150 million to the collapsing lender C, while the Ontario Teachers’ Pension Plan was $95 million in FTX.
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