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The Canadian Securities Administrators has tightened registration requirements for crypto exchanges for the 2nd time, aft the upset seen successful 2022.
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The Canadian Securities Administrators (CSA) published a announcement connected Feb. 22 describing caller commitments it expects from crypto plus trading platforms (CTPs) seeking registration successful Canada. The CTPs volition participate into a caller mentation of preregistration undertakings (PRUs), which are legally binding documents. Registered CTPs volition beryllium contacted by their main regulators astir compliance with the caller expectations.
The caller commitments correspond capitalist protections successful airy of the spate of CTP insolvencies that occurred successful 2022, the CSA wrote. The caller commitments interaction connected issues that see segregation of assets, leverage, determination of capital, transparency and others. The announcement devoted by acold the astir abstraction to:
“A prohibition connected the portion of the CTP successful respect of clients buying oregon depositing Value- Referenced Crypto Assets (commonly referred to arsenic stablecoins) done crypto contracts without the anterior written consent of the CSA.”The announcement explained that “CTPs are prohibited from permitting Canadian clients to participate into crypto contracts to bargain and merchantability immoderate crypto plus that is itself a information and/or a derivative. […] Staff are of the presumption that Fiat-Backed Crypto Assets mostly conscionable the explanation of ‘security’ and/or would conscionable the explanation of “derivative” successful respective jurisdictions.” The CSA “would not expect to supply consent “ for different types of stablecoin, specified arsenic algorithmic stablecoin, either.
Nonetheless, exceptions tin beryllium made successful penning by the CSA. The announcement said, “We admit that VRCAs whitethorn beryllium […] arsenic an on-ramp to deposit assets with the CTP, for the trading of different crypto assets, arsenic a store of worth during times of volatility successful the crypto plus markets oregon to debar converting their crypto assets into fiat currency, oregon […] arsenic a means of payment.”
Related: Crypto.com delists USDT for Canadian users pursuing OSC ban
Coinsquare, a CTP registered successful Canada, listed USD Coin (USDC) and Dai (DAI) stablecoins among its 40 offerings astatine the clip of writing.
The CSA is an umbrella enactment of Canadian provincial regulators. Its Feb. 22 announcement was the 2nd update to a papers that was introduced successful August.
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Canadian Securities Administrators whitethorn mean to tighten rules for cryptocurrency exchanges aboriginal this month. pic.twitter.com/wSytpVZnFq
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