Crypto Market Update: Canadian regulatory council has established a new preregistration filing for cryptocurrency platforms
The Canadian Securities Administrators (CSA), a council of provincial and territorial securities regulators, announced on Monday that crypto trading platforms will be required to provide a preregistration undertaking to their principal regulators as part of their efforts to fully comply with securities regulation.
Two platforms, Crypto.com and Coinsquare Capital Markets in Canada, have already submitted those undertakings.
Trading platforms will be needed to agree to the commitment to comply with investor protection terms and conditions. Filing the undertaking will allow crypto trading platforms to continue functioning while their applications for registration with the CSA are reviewed. The new initiative is part of the "interim strategy" outlined in the CSA and Investment Industry Regulatory Organization of Canada's guidelines on securities law requirements for crypto asset trading platforms, which was announced in March 2021.
The Ontario Securities Commission, which is their primary regulator, received undertakings from Crypto.com and Coinsquare Capital Markets. The CSA stated in its release that it was in talks with various platforms regarding the undertaking.
Registration for cryptocurrency trading platforms in Canada takes a long time. Before acquiring full registration, they might earn "restricted dealer" status. Platforms that have filed to become limited dealers still need to file the newly established undertaking.
In a statement, Crypto.com stated that it is already regulated in Canada by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and Quebec's Autorité des marchés financiers (AMF). In a statement, Crypto.com CEO Kris Marszalek stated:
“The North American market, notably Canada, provides a significant area of potential growth for the cryptocurrency industry.”
The CSA stated that member organizations may "take action" against platforms that do not submit an undertaking.
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