Canada puts cryptocurrency trading platforms on notice

Grygo is the director of content for FTF & FTF News.

During this winter of discontent and falling values ​​for the crypto world, many are waiting for regulators in the US and elsewhere to solidify the rules of the road. Industry participants expect SEC Chairman Gary Gensler, the CFTC, the Federal Reserve, US Senators, EU agencies and multinational organizations to coordinate a response or series of responses to the realities of cryptocurrencies.

But getting regulators to agree at the right time is next to impossible, though it shouldn’t be. It is also similar to herding cats.

Meanwhile, Canada is not waiting for the big convergence and is letting crypto trading players know what it expects of them.

Officials from the Canadian Securities Administrators (CSA) report that they are “providing an important update to cryptocurrency trading platforms that continue to operate in Canada as they take steps to comply with applicable securities legislation,” according to a recent announcement.

“CSA members now expect such platforms to provide a pre-registration commitment to their main regulator to continue operations while their application is reviewed,” according to the announcement. “By granting these commitments, crypto trading platforms agree to abide by terms and conditions that address investor protection concerns and are consistent with requirements currently applicable to registered platforms.”

In fact, the Ontario Securities Commission has just “published the first pre-registration commitments, filed by Coinsquare Capital Markets Ltd. and Crypto.com. CSA members are in talks with other cryptocurrency trading platforms to provide pre-registration commitments. Once provided, these pledges will be posted on the CSA website,” according to the announcement.

CSA members can act “if a crypto trading platform is not prepared to submit a commitment or fails to meet the terms of a commitment,” CSA officials state.

The officials also recall that “on March 29, 2021, the CSA and the Investment Industry Regulatory Organization of Canada published a notice outlining the securities law requirements that apply to cryptocurrency trading platforms. All crypto trading platforms that are registered in Canada or have provided a prior registration commitment to a CSA member are listed on the CSA website.”

Just to remind you, “The CSA, the council of securities regulators for Canada’s provinces and territories, coordinates and harmonizes the regulation of Canadian capital markets.”

The CSA serves as “the umbrella organization for Canada’s provincial and territorial securities regulators, whose goal is to improve, coordinate and harmonize the regulation of Canadian capital markets.”

To enforce securities laws and regulations, the CSA coordinates with the Ontario Securities Commission, the Alberta Securities Commission, the British Columbia Securities Commission, the Manitoba Securities Commission, the Financial Services Commission and New Brunswick Consumer, Nova Scotia Securities Commission, Office of the Superintendent of the Newfoundland and Labrador Securities Service, Autorité des marchés financiers (Quebec), Saskatchewan Consumer and Financial Affairs Authority, Office of the Superintendent of Securities of Yukon and the Northwest Territories Office of the Superintendent of Securities. The CSA Secretariat office is based in Montreal, Quebec.

As the CSA initiative moves forward, it may prove useful to other authorities as they struggle to agree on a useful framework for much-needed crypto regulation.

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