Cryptocurrency is not necessarily a “security” under
Canadian securities law. Nonetheless, Canadian regulators have
sought to extend their reach over cryptocurrency in various ways.
This bulletin advises of recent developments in the Canadian
securities regulatory space particularly in the area of
cryptocurrency platforms and other service providers.
As of the date of this bulletin, there are no cryptocurrency
trading platforms recognized under Canadian securities laws as an
exchange or authorized to act as a marketplace or dealer in
Canada.
The Canadian Securities Administrators and Investment Industry
Regulatory Organization of Canada recently issued Consultation
Paper 21-402, Proposed Framework for Crypt-Asset Trading
Platforms.1 The paper contains Canadian regulatory
commentary on: the nature of crypto assets and application of
securities legislation; risks related to platforms; regulatory
approaches in other jurisdictions, and the proposed platform
framework.
