Regulatory Alerts2023-02-22
Canadian Securities Administrators Staff Notice 21-332: Crypto Asset Trading Platforms Pre-Registration Undertakings Changes to Enhance Canadian Investor Protection
The Canadian Securities Administrators have updated the pre-registration undertaking requirements for unregistered crypto asset trading platforms operating in Canada to address investor protection risks highlighted by recent industry insolvencies. These enhanced commitments mandate strict custody segregation, prohibit the pledging of client assets and the offering of leverage, and require independent board oversight and regular financial reporting. Platforms must submit the revised undertaking within 30 days or face mandatory off-boarding of Canadian users and access restrictions.
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