An overview of the existing regulatory requirements applicable to CTPs;
Key risks identified by the CSA and IIROC from the operation of CTPs;
Areas where flexibility may be available in how regulatory requirements will be applied to CTPs; and
Compliance steps that a CTP needs to take, including interim steps that may allow a CTP to operate as it prepares to fully integrate into the securities regulatory framework.
Beyond indicating that CTPs operating in Canada are subject to regulation under the current securities regulatory framework, the Staff Notice notes that an existing registered firm that introduces crypto asset products and/or services will be required to report changes in its business activities to its principal regulator, and in the case of investment dealers, to IIROC.
Canada issues new guidance for digital currency exchange regulation Business
Authorities in Canada have published new updated guidance for digital currency exchanges operating in the country, in a move that could lead to the introduction of mandatory licensing requirements.
Two Canadian regulatory agencies published the proposals which target crypto-asset trading platforms, or CTPs, The Globe and Mail reported. The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada published the proposals in order to delineate where existing securities legislation applies to the activities of digital currency businesses.
As per the proposals, new licensing requirements would be introduced for digital currency platforms that retain control over customer funds. The rules will not extend to non-custodial exchanges, unless they also offer margin trading.
New Regulatory Guidance Requires Immediate Attention from Crypto Trading Platforms | Bennett Jones LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.