The Canadian Securities Administrators are strengthening regulations on cryptocurrency trading platforms

ChainCatcher news, the Canadian Securities Administrators (CSA) is strengthening its regulation of crypto trading platforms by expanding existing requirements for platforms operating in Canada. If platforms currently subject to Canadian securities legislation do not provide a Pre-Registration Undertaking (PRU) to their principal regulator or cease operations, the CSA will consider all applicable regulatory options, including enforcement actions. CSA members will soon communicate the deadline for platforms to deliver the PRU.

It is reported that cryptocurrency trading platforms providing PRU commitments need to agree to comply with relevant extended terms, which include the requirement to transfer Canadian customers' assets to appropriate custodians and to segregate these assets from the platform's proprietary business, as well as prohibiting the provision of margin or leveraged trading to any Canadian customers.

In August 2022, the Canadian Securities Administrators issued a statement indicating that unregistered cryptocurrency trading platforms operating in Canada should make commitments or comply with commitment terms when seeking registration. (source link)