- They must apply to the CSA
- The regulator will check the firms for compliance with the new rules
- And then start full registration
The Canadian Securities Administrator (CSA) has released an important Press release. It states that crypto companies planning to operate in the country must pre-register within a month. After that – complete the full registration and follow the rules.
Within 30 days, firms must normalize certain requirements. So, for crypto-exchanges, storage rules are introduced, which oblige to separate crypto-assets intended for local clients. Canada also introduces:
- prohibition of margin trading;
- prohibition of trading with leverage;
- prohibition of the sale of stablecoins without the permission of the CSA.
Pre-registration also imposes additional custody obligations on Canadian clients’ assets.
“The recent bankruptcies of crypto exchanges highlight the enormous risks associated with trading crypto assets, especially when they are conducted on unregistered platforms located outside of Canada.” Stan Magidson, CSA Chairman and CEO of the Alberta Securities Commission, comments.
Applicants must publish their revised commitments prior to registration and submit documents to the regulator. Firms that cannot or do not want to comply will be blocked by the authorities.
Recall that in December, Canada introduced a ban on margin trading and leverage for crypto exchanges.