CSA Publish Interim Approach To Stablecoins

This fall, the Canadian Securities Administrators ("CSA") released CSA Staff Notice 21-333 Crypto Asset Trading Platforms: Terms and Conditions for Trading Value-referenced Crypto Assets with Clients (the "Staff Notice") to provide further guidance to crypto asset trading platforms ("CTPs") on the CSA's interim approach to value-referenced crypto assets ("VRCAs", commonly referred to as "stablecoins"). The Staff Notice sets out terms and conditions on which the CSA would consent to a CTP continuing to make certain VRCAs available to its clients, along with important dates for implementation.

Background

A VRCA is a crypto asset that is designed to maintain a stable value over time by referencing the value of a fiat currency, any other value or right or a combination thereof. As we discussed in a previous post, VRCAs may constitute securities and/or derivatives in some jurisdictions. Registered CTPs and CTPs that have provided a pre-registration undertaking