Canadian regulators have required trading platforms trade crypto goes through enhanced pre-registration in its quest to register. The changes include a ban on offering margin, credit or other forms of leverage.
Canadian authorities act on regulations crypto. The Ontario Securities Commission has issued a notice stating that it has increased oversight of cryptocurrency trading platforms in the country.
The opinion Describe the “the investor protection commitments you expect from trading platforms trade of crypto assets (CTP) operating in Canada“. Refers specifically to multiple bankruptcies that have taken place in the last 12 months.
These include the likes of FTX and Voyager Digitalwhich also made the headlines in the main media.
Thus, the Canadian authorities want impose checks and balances to ensure that such incidents does not happen again. The platforms of trade Crypto registration applicants will be required to provide an “enhanced pre-registration” within 30 days of February 2022, when the notice was posted.
Enhanced pre-registration requirements include custody information and segregation of crypto assets on behalf of Canadian clients. Perhaps more importantly, it prohibits offering margin, credit or any other form of leverage to Canadians.
stablecoins they are also part of the new rules. The platforms of trade crypto may not allow the purchase or deposit of stablecoins without written consent. This also includes proprietary tokens.
Canada revealed the regulatory approach to trade crypto in 2022
The focus on stablecoins it is something that governments around the world are also doing. Last year, Canada revealed a foray into regulation of the stablecoins when he announced a consultation on cryptocurrencies and stablecoins in your budget statement.
He noted that regulatory frameworks should keep pace with financial innovations.
THE stablecoins are a huge problem for governments, who disagree that they can challenge and pose risks for fiat currencies. As such, they conduct reviews of the niche to see what the challenges and opportunities are.
Canadian regulators move forward with regulation
Canada has picked up the pace on regulation, staying true to its stated intentions in the budget statement. For example, the decision to ban the trade of leverage was first revealed in December 2022.
Changes in regulations have led the major platforms to adapt their offers. Crypto.com delisted Tether in Canada comply with the updated regulations of the stablecoins. More such changes may soon be implemented as Canada focuses on imposing controls following incidents like the FTX collapse.
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