The Canadian Securities Administrators (CSA) outlined stricter requirements for crypto firms in a statement published on Monday. Measures include separating client and proprietary business assets, ensuring client assets are held with an “appropriate custodian,” and prohibiting offering margin or leverage for Canadian users.
Platforms outside of Canada that offer services to Canadians will fall under the same requirements.
The CSA required crypto firms to commit to acquiring registration in August by obtaining a pre-registration undertaking (PRU) license. This meant the same requirements applied as registered platforms.
Now, the CSA is not cutting any slack. If a platform does not show a PRU to its regulator, the CSA “will consider all applicable regulatory options to bring the platform into compliance with securities law, including enforcement action,” the statement said. A deadline will be issued soon.
The watchdog also noted that it regards stablecoins as “securities and/or derivatives,” which are prohibited. Canadian traders cannot trade or be exposed to such crypto assets on registered or pre-registered platforms.
