As we close out 2021, we highlight some of the recent trends we
have seen in securities litigation and enforcement which we
anticipate will continue in the new year.
1. Crypto
2021 saw an explosion of activity in the global crypto asset
market, with crypto market capitalization doubling in 20211. Accompanying
this increase in market activity has been heightened attention from
Canadian regulators. The OSC, IIROC and CSA have all indicated that
regulating crypto trading is among their priorities for the coming
year.
Crypto asset trading platforms are now required to be registered
in Ontario. In 2021, the OSC took a firm stance on the registration
requirement and initiated enforcement actions against non-compliant
firms. The OSC also brought proceedings against four international
crypto-asset trading platforms, and settled with numerous firms,
collecting over $10 million in settlements relating to crypto
offerings or trading.