CSA issues guidance that securities legislation likely applies to custodial cryptoasset trading platforms

On January 16, 2020, the Canadian Securities Administrators (CSA) released CSA Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets  [PDF] (the Staff Notice). This guidance has significant implications for Canadian and foreign cryptoasset trading platforms that maintain custody of a customer’s cryptoassets following a purchase by the customer. The CSA suggests that platforms which do not immediately transfer ownership, possession and control of all cryptoassets purchased by  customers are likely dealing in derivatives or securities, and are therefore subject to regulation as dealers or marketplaces under applicable securities laws.

For more information, read our Osler Update entitled "CSA issues guidance that securities legislation likely applies to custodial cryptoasset trading platforms." 

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Editors

Lawrence E. Ritchie

Partner, Litigation

Alexander Cobb

Partner, Litigation

Shawn Irving

Partner, Litigation

Kevin O’Brien

Partner, Litigation

Lauren Tomasich

Partner, Litigation

Malcolm Aboud

Associate, Litigation