(Toronto) The Canadian Securities Administrators (CSA) have set new rules for unlisted crypto-asset trading platforms operating in Canada following a spate of bankruptcies in the 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.
The new rules include a requirement that unlisted trading platforms have written approval from the CSA before allowing their clients to buy or deposit proprietary tokens or stablecoins, a term regulators say is misleading and misleading in value.” .
The additional restrictions build on a set of rules that securities regulators put in place last August that trading platforms must adhere to while awaiting listing.
The CSA, which helps coordinate guidance from provincial securities regulators, advises that if unlisted platforms do not wish to enter into an expanded pre-listing commitment, they will take steps to exclude Canadian users from negotiations and access to them to restrict.
In its update notice, the CSA reminded investors that trading cryptocurrencies carries a high level of risk and may not be suitable for many investors. As such, some trading platforms available to Canadians may lack essential safeguards to protect assets from loss, theft or fraud.
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