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ARTICLE · 23 MARCH 2021

Canadian Securities Regulators Issue Guidance On Disclosure By Crypto Assets Issuers

The Canadian securities regulators have published guidance on continuous disclosure obligations for reporting issuers dealing in digital assets...

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The Canadian securities regulators have published guidance on continuous disclosure obligations for reporting issuers dealing in digital assets, including cryptocurrencies, tokens, stablecoins, and other digital assets relying on blockchain technology (crypto assets). 

Key recommendations 

Safeguarding of Crypto Assets

Issuers are expected to identify controls adopted (or not adopted) to protect against the risk of theft or loss of crypto assets. Appropriate controls may vary depending on the size of the issuer, the type and quantity of crypto assets held, and the frequency at which the crypto assets are moved. Issuers that have retained a third-party custodian should disclose sufficient information on that custodian. Issuers that have not retained a third-party custodian should disclose their reasons for not doing so. The staff notice lists several examples of the information the Canadian securities regulators (CSA) would expect to see in this regard.

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