As they take steps to comply with securities regulation fully, crypto trading platforms need to preregister that comply to principal regulators, according to a Monday announcement from the Canadian Securities Administrators.
By submitting the undertaking, crypto trading services can keep operating while their CSA registration applications are being reviewed.
Canadian crypto trading platforms under rigid oversight
Two sites have already submitted their undertakings: the Canadian operator Coinsquare Capital Markets and Crypto.com.
Trading platforms will be obliged to commit to comply with investor protection terms and conditions in the undertaking. The new initiative is part of the “interim approach” outlined in the CSA and Investment Industry Regulatory Organization (IIROC) of Canada’s guidance on securities law requirements for crypto asset trading platforms announced in March 2021.
The Ontario Securities Commission asked Coinsquare Capital Markets and Crypto.com to file undertakings. In its announcement, the CSA stated that it was in talks with other platforms regarding the project.
No shortcuts
There are long registration queues for crypto trading sites in Canada. They can become “restricted dealers” before completing the registration process. Platforms that have requested to become limited dealers must still submit the newly established undertaking.
In a statement, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Autorité des marchés financiers (AMF) of Quebec already regulate Crypto.com in the country.
“The North American market, and Canada specifically, represent a significant area of potential growth for the crypto market,” Crypto.com CEO Kris Marszalek said in the statement.
The CSA stated that member organizations may “take action” against platforms that do not file an undertaking.