CSA Imposes More Restrictions And March 24 Deadline On Unregistered Crypto Trading Platforms

In the aftermath of recent major disruptions in the crypto industry, securities regulators in Canada have again raised the bar for unregistered crypto asset trading platforms (CTPs) operating in Canada.

In the latest of a series of announcements conveying its evolving regulatory approach to the CTP industry, the Canadian Securities Administrators (CSA) umbrella group has given notice that it is enhancing the requirements that regulators impose on unregistered CTPs in their preregistration undertakings (Undertakings). These enhanced requirements include stricter standards of governance, reporting and handling of customer assets. The new CSA guidance sets a 30-day deadline (expiring March 24, 2023) by which unregistered CTPs are expected to provide a revised Undertaking. The guidance also expands on the CSA's previously announced position that stablecoins may constitute securities and/or derivatives under Canadian securities legislation.