CSA Expand Commitments That Are Immediately Required From Unregistered Crypto Asset Trading Platforms Operating In Canada

On February 22, 2023, the Canadian Securities Administrators (CSA) published CSA Staff Notice 21-332 Crypto Asset Trading Platforms: Pre-Registration Undertakings – Changes to Enhance Canadian Investor Protection (the Staff Notice). The Staff Notice imposes additional commitments on crypto asset trading platforms (CTPs) that operate in Canada, following the recent collapse of FTX and other insolvencies in the crypto space. Certain action is required from unregistered CTPs as early as March 24, 2023.

Background

On August 15, 2022, the CSA announced their expectation that unregistered CTPs that continue to operate in Canada while taking steps to comply with applicable securities legislation provide to their principal regulator (PR) a pre-registration undertaking (PRU). By providing the PRU while their application for registration or related relief is under review, unregistered CTPs agree to comply with certain core business conduct and risk management obligations