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ARTICLE · 29 JANUARY 2020

Legislative Guidance For Crypto-Asset Trading Platforms

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On January 16, 2020, the Canadian Securities Administrators (CSA or Staff) published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto-assets (the Staff Notice).

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On January 16, 2020, the Canadian Securities Administrators (CSA or Staff) published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto-assets (the Staff Notice). The Staff Notice describes situations where securities legislation will and will not apply in an effort to help stakeholders better navigate the evolving regulatory regime.

Key Takeaways

  • The CSA encourages crypto-asset trading platforms (Platforms) to comply with securities legislation but exempts Platforms of which the underlying crypto-asset is not a security or derivative and the contract or instrument results in an obligation to make immediate delivery of the crypto-asset and is settled by such immediate delivery.

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