Canada’s Regulators Tighten Oversight of Crypto Exchanges

The Canadian securities regulators (CSA) ужесточили requirements for crypto firms after the collapse of FTX, extending them to include organizations registered in other jurisdictions.

The measures include separating firms’ own funds from client funds, safekeeping the latter with a ‘qualified custodian’, and a ban on offering margin trading to residents.

“Even with these measures, cryptocurrencies or crypto-based financial products remain high-risk investments. Risks may arise from the platform’s failure to comply with regulatory requirements, interdependencies within the sector, insolvency, hacks, price volatility, and uncertain value propositions for individual assets,” the statement said.

In August, the CSA required crypto firms to obtain licences for pre-approval of their activities. They will be subject to the same requirements as those already registered.

Regulators are expected to announce the deadline for obtaining such licences soon. Non-compliance carries enforcement action.

The regulator also pointed to a ban on stablecoins, which it has deemed “securities and/or derivatives.” Residents will not be able to take on risks from such assets.

In August, the Ontario Securities Commission banned two regulated crypto exchanges — Wealthsimple and Coinberry — from dealing with USDT.

Earlier, the regulator fined Bybit and ordered KuСoin to cease operations. Before that, the latter measure affected Binance and Bitfinex.

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