The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have outlined securities law requirements that apply to crypto-asset trading platforms.
The notice provides guidance on securities law requirements applicable to all platforms, whether trading crypto assets that are securities or derivatives, or contractual rights or claims to underlying crypto-assets such as bitcoin, or both.
Furthermore, it also gives notice to interim approaches that may be available to CTPs, that are intended to foster innovation and provide flexibility, while ensuring the CTPs operate in an appropriately regulated environment.
“The guidance in our notice details steps platform operators need to take to comply with securities legislation as they prepare to fully integrate into the Canadian regulatory structure,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “To bring their operations into compliance, CTPs should contact their local securities regulator now to discuss the registration process and address applicable requirements.”
“We are pleased to work with the CSA on such an important initiative,” said Andrew J. Kriegler, President and CEO, IIROC. “This framework provides guidance on how the regulatory requirements may be tailored to a platform’s business, without compromising investor protection or market integrity.”
“We remind all CTPs that are dealing with Canadians, including foreign-based CTPs, that they are expected to comply with Canadian securities legislation,” added Louis Morisset. “Failure to do so could result in CSA members pursuing enforcement action.”