Canadian authorities are keen to protect their citizens from the risks associated with cryptocurrency and centralized exchanges. To this end, the Canadian Securities Administrators (CSA) has set new rules applicable to the crypto sector. Now, crypto platforms are prohibited from providing leveraged trading services or stablecoin transactions. The Canadian regulator is also calling on all exchanges to register within 30 days.
Obligation to register and prohibition of certain services for exchanges
In order to protect Canadian citizens against the risks associated with cryptocurrencies, the Canadian regulator has set new measures for crypto platforms. In a statement published on February 22, the Canadian Securities Administrators (CSA) announced that cryptocurrency exchanges are now required to register in order to continue doing business in Canada. This registration must be done within 30 days, insists the CSA.
In addition to the registration requirement, cryptocurrency exchanges are subject to certain restrictions. Indeed, exchanges are prohibited from offering Canadian users a leveraged trading service. In addition, stablecoin transactions are prohibited for Canadian users, except with the prior consent of the CSA.
The CSA does not intend to compromise with the new restrictions imposed on the exchanges. The Canadian regulator even invites exchanges unable to comply with its new guidelines to … leave the Canadian market.
If a crypto platform is unable or unwilling to provide an enhanced pre-registration commitment, CSA expects it to take appropriate steps to exclude existing Canadian users and impose restrictions to prevent Canadian users to access its products or services.
Canadian Securities Administrators (CSA).
Crypto and exchanges are dangerous, warn Canadian authorities
After the collapse of FTX last year, several anti-crypto actors have one more argument to fight digital assets. This is particularly the case of the CSA. In its statement, the Canadian regulator seriously criticized the crypto.
For him, cryptocurrency is a risky asset, especially for small investors. The regulator believes in particular that the volatility of cryptocurrency makes it a speculative asset. Exchanges are also perceived as a danger for investors due to the risk of insolvency.
To mitigate the risks associated with cryptocurrency and industry platforms, the CSA urged Canadians to be cautious. In addition, the regulator has published educational content on cryptocurrency and a directory of registered platforms, accessible to Canadians wishing to invest in cryptocurrency.
Regulating the crypto sector to protect consumers is not a bad idea. Nevertheless, States must ensure that the rules adopted really serve this cause. By prohibiting the holding and sale of stablecoins, Canadian authorities are depriving their citizens assets serving as a refuge during the bear market crypto…
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.
