Canada News on Cryptocueewncy All cryptocurrency trading platforms seeking registration will be required to sign undertakings to comply with investor safeguards, according to two sources who have been briefed on the plans and spoke to CoinDesk.
In the wake of the FTX crash, Canada News on Cryptocueewncy the new regulations will also make it more challenging for regular investors to trade cryptocurrencies using leveraged bets.
The Canadian Securities Administrators (CSA) intends to tighten control over domestic bitcoin exchanges. Applicants for cryptocurrency will have to accept stricter regulations, including a prohibition on margin and leverage trading, as part of a package of new registration requirements.
The plan also forbids crypto service providers from collecting credit card payments and mandates that they maintain customer assets apart from their own operational finances.
Moreover, it is suggested that providers be compelled to keep all assets belonging to Canadian consumers Canada News on Cryptocueewncy “with an authorized custodian and isolate these assets from the platform’s exclusive business.”
Cryptocurrency platforms are required to submit a pre-registration undertaking to their major regulator in order to continue functioning while their application is being reviewed. The cryptocurrency exchange understands that its platform is subject to terms and conditions that address investor protection problems by making certain pledges.
CSA members may take legal action against a cryptocurrency trading platform if it is unable to file an undertaking or does not follow its conditions.
The CSA continued by threatening enforcement action, including interim orders, until crypto-asset trading platforms started the registration procedure.
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The new registration regulations coincide with a nationwide campaign against unlicensed exchanges. The biggest cryptocurrency exchange in the world, Binance, warned a Canadian provincial authority last year that it would no longer be taking on new clients. The industry’s titan appears to have chosen to leave Canada rather than follow securities regulations or come under regulatory investigation.
The action comes after Binance was targeted by the Ontario Securities Commission in 2021 for allegedly breaking securities laws. At the time, OSC claimed that Binance had disregarded its promise to authorities, having previously assured its personnel that no further transactions involving residents of Ontario would take place.
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