Below the pre-registration undertakings, CTPs are additionally prohibited from allowing shoppers to buy or deposit stablecoins and proprietary tokens with out in search of the CSA’s written consent first.
“Latest insolvencies involving a number of crypto asset buying and selling platforms spotlight the large dangers related to buying and selling crypto belongings, notably when carried out on unregistered platforms primarily based outdoors of Canada,” CSA Chair Stan Magidson, who’s additionally chair and CEO of the Alberta Securities Fee, mentioned in an announcement.
The CSA expects crypto platforms which are working in Canada and nonetheless within the means of registering to submit an enhanced pre-registration endeavor to their principal regulator inside 30 days.
These unable or unwilling to conform are anticipated to “take applicable motion to off-board current Canadian customers” and “forestall Canadian customers from accessing its services or products.
The CSA discover additionally highlighted the “elevated ranges of danger” related to buying and selling in crypto belongings, including that it “might not be appropriate for a lot of buyers, notably retail buyers.”