Under Certain Conditions CSA of Canada may Allow Crypto Trading

CSA of Canada May Allow Crypto Trading Under Certain Conditions

The interim approach to value-referenced crypto assets and stablecoins in particular, allowing the trading of certain cryptocurrencies by referencing the value of fiat currencies, subject to certain conditions, was outlined by Canada’s Security Administrator. The stablecoins may be considered securities and derivatives that cannot be traded on Canadian exchanges, as previously said by CSA. Along with proper asset storage and disclosure of relevant information permission to trade can be provided. CSA has emphasized at the same time that fiat-based crypto assets meeting the criteria are still risky and cannot be considered completely risk-free. Stablecoin market capitalization has been declining over the last 18 months and currently stands at $123 Billion, which is approximately 11% of the crypto market capitalization as reported by CSA.