Crypto Asset Trading Platforms – Changes To Pre-Registration Undertaking Requirements In The Post FTX-Era

On Feb. 22, 2023, the Canadian Securities Administrators (CSA) published Staff Notice 21-332 Crypto Asset Trading Platforms: Pre-Registration Undertakings Changes to Enhance Canadian Investor Protection (the Staff Notice) as a follow-up to the CSA's update on Dec. 12, 2022 relating to its approach to strengthen oversight over crypto asset trading platforms (CTPs) operating in Canada.

The Staff Notice provides additional guidance on the CSA's expectations with respect to CTPs that operate in Canada while seeking registration and related exemptive relief. All unregistered, but operating, CTPs are required to make certain commitment to the CSA through a pre-registration undertaking (PRU) that must be entered into within 30 days of the publication of the Staff Notice. CTPs will then be given a period after the signing of the PRU to implement any systems changes required to give effect to the provisions of the PRU.