Canada’s Securities Directors (CSA) on Dec. 12 barred crypto exchanges working within the nation from providing margin or leverage buying and selling companies to any Canadian consumer.
The regulator added that these crypto exchanges should maintain their Canadian shoppers’ belongings with an applicable custodian and segregate them from the platform’s proprietary enterprise.
CSA famous that stablecoins would possibly represent securities or derivatives. The regulator reminded the crypto exchanges that they’re prohibited from permitting Canadians to commerce or have publicity to any crypto asset that may be a safety or a spinoff. CSA wrote:
“Crypto buying and selling platforms are anticipated to have established insurance policies and procedures to find out whether or not every crypto asset they supply publicity to is a safety and/or spinoff.”
CSA stated its newest transfer is a part of its effort to strengthen its oversight of crypto buying and selling companies by increasing present necessities for these platforms.
In the meantime, regardless of these measures, the regulator warned that crypto investments or monetary merchandise associated to crypto belongings are high-risk investments. The regulator requested Canadian buyers to train warning earlier than investing in crypto and urged them solely to make use of platforms registered with the physique.
