In order to be registered in Canada, cryptocurrency platforms will need to agree to stricter regulations, which include a prohibition on margin and leverage trading.
In accordance with the extended guidelines provided by the Canadian Securities Administrators (CSA) on Monday, companies will also be required to hold the assets of Canadian clients apart from their own proprietary firm.
Businesses engaged in cryptocurrency were informed in August that in order to function while pursuing full registration, they must submit a pre-registration undertaking (PRU). A PRU submission deadline has not yet been specified, but it will be informed to platforms “shortly,” according to a CSA announcement.
However, a PRU will bind platforms to a more extensive set of guidelines and criteria in light of what the CSA called “recent events in the crypto market.”
“Crypto trading platforms giving these undertakings agree to comply with expanded terms and conditions that will include, among other things, requirements to hold Canadian clients’ assets with an appropriate custodian and segregate these assets from the platform’s proprietary business, as well as a prohibition on offering margin or leverage for any Canadian client.”
Canadian Securities Administrators
The CSA reaffirmed its belief that cryptocurrency assets are extremely speculative as part of Monday’s announcement.
The majority of Canadian authorities hold a sceptic attitude toward cryptocurrency. When it comes to cryptocurrencies, Prime Minister Justin Trudeau has criticised opponents for advancing “questionable, reckless economic ideas,” and the nation’s central bank has cautioned that using Bitcoin and other tokens is not a method to avoid inflation.
