Canadian Authorities Tighten Controls On Crypto Trading Networks
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Canadian Authorities to Tighten Guidelines for Crypto Trading
In a statement released Monday, the Canadian Securities Administrators (CSA) laid forth more stringent guidelines for cryptocurrency businesses. A few of the controls include keeping client funds separate from proprietary business assets and making sure client assets are managed by an appropriate custodian. Additionally, they have forbidden selling margin or leverage to Canadian customers.
The same regulations apply to foreign platforms that provide services to Canadians. The Canadian Authorities demanded that cryptocurrency companies secure a pre-registration undertaking (PRU) license in order to commit to registering in August. The conditions were, therefore, the same as those for platforms that were registered.
Stablecoins As Securities and Derivatives
The CSA is currently not giving any leeway. According to the statement, the CSA would explore all appropriate regulatory measures, particularly enforcement action, to bring the network into conformity with securities legislation if a platform fails to provide a PRU to its regulator. Soon, a deadline will be announced.
The watchdog added that stablecoins are considered securities and derivatives, which are illegal. Such cryptocurrency assets cannot be traded or exposed to by Canadian traders on regulated or pre-registered platforms.