The Canadian Securities Administrators (CSA) stated that as crypto trading platforms take steps to fully comply with securities regulation they will be required to provide a preregistration undertaking committing them to investor protections.
As they crypto trading platforms to their principal regulators, according to a Monday announcement from the Canadian Securities Administrators (CSA), the council of provincial and territorial securities regulators.
These undertakings have already been submitted by two sites, crypto.com and the Canadian portal Coinsquare Capital Markets. Trading platforms will be required to sign an undertaking promising to abide by rules pertaining to investor protection.
By submitting the undertaking, crypto trading services can keep running while their CSA registration applications are being reviewed.
The new initiative is a part of the “interim strategy” outlined in the CSA and Investment Industry Regulatory Organization of Canada’s March 2021 guidance on securities legislation obligations for platforms that trade digital assets (IIROC).
With the Ontario Securities Commission, which serves as its primary regulator, Crypto.com and Coinsquare Capital Markets submitted undertakings. In its announcement, the CSA stated that it was in talks with other platforms regarding the project.
Canada’s crypto trading platforms have protracted registration delays. Before completing registration, they can become “restricted dealers.” The newly constituted commitment still has to be filed by platforms that have applied to become restricted dealers.
In a statement, Crypto.com noted that it is already governed in Canada by the Autorité des marchés financiers (AMF) of Quebec and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Kris Marszalek, the CEO of Crypto.com, stated in the statement
“The North American market, and Canada specifically, represent a significant area of potential growth for the crypto market.”
Member organizations could “take action” against platforms that don’t submit an undertaking, according to the CSA.
