Mar 29, 2021
The Canadian Securities Administrators (CSA) have issued long-awaited guidelines specifying how existing securities legislation applies to cryptocurrency trading platforms that are based in Canada or facilitate trades for Canadians. Moving forward, any platform that facilitates trades in digital tokens or contracts involving crypto assets must register as an investment dealer and join the Investment Industry Regulatory Organization of Canada (IIROC). In the alternative, such platforms are required to apply for an interim registration pending regulators clarifying their business activities.
In a recent article in The Globe and Mail, capital markets reporter Vanmala Subramaniam takes a closer look at this new guidance from the CSA and discusses the impact complying with the new regulatory framework will have on crypto trading platforms. One of the experts that Subramaniam consults for input is Lori Stein, a partner in Osler’s Corporate Department.
Lori explains while the new rules provide “much needed clarity,” they also impose a “significant amount of regulatory compliance requirements,” given that all platforms must register with the appropriate regulators first and then apply for exemptions based on their business model.
“It’s a catch-and-release system, and it will be costly and time-consuming for platforms to achieve regulatory compliance under this framework,” she says.
If you have a subscription to The Globe and Mail, you can learn more by reading Vanmala Subramaniam’s full article, “Regulators unveil new guidance for cryptocurrency traders in Canada,” published on March 29, 2021.