TORONTO — The Canadian Securities Administrators (CSA) say that crypto-trading platforms should now make certain commitments regarding the protection of investors during the review of their listing applications.
The umbrella organization for provincial securities regulators says Crypto.com and Coinsquare Capital Markets Ltd. are the first to submit pre-registration commitments.
The CSA says provincial regulators are in discussions with other crypto-trading platforms to follow suit, and that regulators can take action if a crypto-trading platform is not ready to file an undertaking.
The commitments cover a range of issues, including not offering advice to clients, not providing margin trading and setting certain limits on how much clients can trade.
In June, the Ontario Securities Commission took on two international crypto trading platforms that failed to comply with provincial securities law, securing a permanent ban on market participation for the one and making a settlement with the second.
Several crypto-trading platforms are already authorized in Canada, including Coinberry Ltd., Bitbuy Technologies Inc. and Wealthsimple Digital Assets Inc.
This report from The Canadian Press was first published on August 15, 2022.
The Canadian Press