The Canadian Securities Administrator (CSA) has drawn up a set of rules to be followed by all platforms offering crypto trading, in order to protect its residents from the financial risks associated with crypto. The global crypto community is trying to recover from a major blow following the collapse of the FTX crypto exchange last month. Under these regulations, Canada has banned crypto exchanges offering ‘margin or leveraged trading’ to residents of the country.
In margin trading, users are allowed to borrow money from the exchange and use it to trade. It allows traders to invest more than they have crypto assetsWhich may or may not give profitable results.
Canada will soon issue a deadline for unregistered crypto companies to disclose their details and submit a pre-registration undertaking (PRU) to the financial regulator.
Companies must certify that they are in compliance with Canadian laws. The CSA further clarified that international exchanges accessible by Canadians must also comply with these rules as part of securities regulation.
,crypto trading platform agreeing to comply with the terms and conditions detailed to these undertakings, including, among other things, placing the assets of the Canadian customers with an appropriate custodian and segregating these assets from the proprietary business of the Platform, as well as margin or The offer of leverage will include a moratorium. For any Canadian customer,” the official statement Read from CSA.
Cryptocurrency companies must choose a custodian to store Canadian customers’ assets. The Custodian must be regulated by a financial regulator in Canada, the US or similar jurisdictions.
“Following recent developments in the cryptocurrency market, the CSA is strengthening its approach to monitoring cryptocurrency trading platforms by expanding existing requirements for platforms operating in Canada. Even with the adoption of these measures, crypto relating to property or financial products crypto assets There are high risk investments. Canadian investors are urged to exercise caution and consider seeking advice from a registered investment advisor before investing in crypto,” the statement said.
Canada is also, at this point, closely examining the role of stable coins in its market.
In a recent survey, the Ontario Securities Commission of Canada Told That 13 percent of Canadians currently hold digital assets such as cryptocurrency or non-fungible tokens (NFTs).