The Canadian Securities Administration (CSA) released a notice on Feb.22 requiring crypto exchanges that plan to operate nationwide to undergo a pre-registration process within 30 days.
CSA chair Stan Magidson explained the reasoning behind this decision by stating:
“Recent insolvencies involving several crypto asset trading platforms highlight the tremendous risks associated with trading crypto assets, particularly when conducted on unregistered platforms based outside of Canada,”
The pre-registration process includes segregating crypto assets held on behalf of Canadian clients and suspending offering margin, credit, or other forms of leverage trading to Canadian users.
Exchanges will also have to stop offering stablecoins until written consent is secured from the CSA.
The CSA also reminded Canadians that crypto trading came with an “elevated” level of risk, which may not be suitable for many investors.
