Canadian Securities Regulatory Commission is stepping up regulation of crypto trading platforms

Foresight News, The Canadian Securities Authority (CSA) is stepping up regulation of crypto trading platforms by expanding existing requirements for platforms operating in Canada, if platforms currently subject to Canadian securities legislation do not provide pre-registration with their primary regulator Commitment (PRU) or cease operations, CSA will consider all applicable regulatory options, including enforcement action. CSA members will communicate with platforms shortly the deadline by which PRUs must be delivered. Cryptocurrency trading platforms that offer PRU commitments will need to agree to abide by the terms of the extension, which include requiring Canadian clients’ assets to be placed in appropriate custodians and keeping those assets separate from the platform’s proprietary business, and prohibiting any Canadian clients from providing margin or Leveraged business. In August 2022, the Canadian Securities Authority issued a statement stating that it expects unregistered cryptocurrency trading platforms operating in Canada to make commitments or abide by the terms of commitments when seeking registration.