Canadian Crypto News – ‘Enhanced’ Restrictions Apply to Canadian Crypto Trading Platforms A new set of guidelines for the local cryptocurrency market ere released by the Canadian Securities Administrators on Wednesday, warning exchanges and other platforms that they would have to adhere to “increased investor protection requirements.”
In accordance with a news release, businesses that want to operate in Canada will need to make these promises as part of a pre-registration procedure before completing their official registrations. To comply, they have 30 days. Canadian Crypto News Custody restrictions, which cover separating crypto assets kept for local clients, prohibiting margin or other kinds of leverage, and prohibiting the sale of stablecoins without the CSA’s consent, must be followed by exchanges and other businesses throughout this pre-registration procedure.
The recent bankruptcies of several crypto asset trading platforms, according to CSA Chair Stan Magidson, who also chairs the Alberta Securities Commission, “highlight the tremendous risks associated with trading crypto assets, particularly when conducted on unregistered platforms based outside of Canada.”
Unregistered cryptocurrency trading platforms have 30 days from the date of the notification to publish a new pre-registration undertaking, which may be put on the CSA website. Businesses that are unable or unwilling to comply are “expected” to ban Canada and unload Canadian users.
In particular, the notice stated that the “enhanced PRU will include additional commitments from the CTP to hold assets, including cash, securities, and crypto assets that are not securities, of a Canadian client… In the case of crypto assets, in a designated trust account or in an account designated for clients’ benefit with a custodian that meets the definition of “Acceptable Third-party Custodian.”
According to the paper, third-party custodians may be Canadian or international businesses, but they need to have submitted a SOC 2 type 1 or 2 reports within the previous year.
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