Komainu gains FCA approval as a custodian wallet provider, bolstering its regulatory footprint and expanding crypto services in the UK.
In recognition of the significance of stablecoins, the Canadian Securities Administrators (CSA) has published new guidelines that define how they should be handled in Canada.
According to the CSA, cryptocurrency service providers may be permitted to provide services for stablecoins tied to a single fiat currency. To safeguard Canadian investors and uphold market integrity, Stan Magidson, CEO of the Alberta Securities Commission and Chair of the CSA, underlined the importance of openness in value-referenced crypto assets, including their reserves and governance.
He added that the framework will “further refine, and establishes standards to ensure investors receive necessary information about the assets they are buying, along with associated risks.”
These temporary conditions were created in response to suggestions from players in the cryptocurrency market. The CSA wants to establish precise rules for how stablecoins should be handled in Canada to protect investors.
The basic guidelines established by the regulation are for the stablecoin issuer to keep an appropriate reserve of assets for the benefit of owners of digital assets, which a competent custodian will keep.
Additionally, detailed information about governance, operations, and asset reserves must be made public by the issuer and platforms providing these stablecoins.
The CSA also outlines the associated investment risks and warns investors about the unique features of stablecoins compared to fiat currency.
