(Toronto) The Canadian Securities Administrators (CSA) have set new rules for unlisted crypto-asset trading platforms operating in Canada, following a wave of bankruptcies in this sector, including those of FTX, Celsius Network and Voyager Digital.
The group of securities regulators says additional investor protections include stricter custody and segregation requirements for crypto-assets held on behalf of Canadian clients, and a ban on offering them spreads, credit or other forms of financial leverage.
Among the new rules is a requirement that unlisted trading platforms have written permission from the CSA before allowing their clients to buy or deposit proprietary tokens or stablecoins, a term regulators say is misleading and misleading. to which they favor the expression “cryptoassets pegged to a value”.
The additional restrictions build on a framework of rules securities regulators rolled out last August that trading platforms must commit to while waiting to get listed.
The CSA, which helps coordinate the policies of provincial securities regulators, indicates that if unlisted platforms do not wish to enter into an enhanced pre-listing commitment, they will take steps to exclude Canadian users from negotiation and restrict access to it.
In their update notice, the CSA reminded investors that trading cryptocurrencies involves high risk and may not be suitable for many investors. Thus, some trading platforms available to Canadians may lack essential safeguards to protect assets against loss, theft or fraud.