The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have published framework for compliance for crypto asset trading platforms (CTPs).
Its notice outlines securities law requirements that apply to CTPs and how they may be tailored by regulators for the CTP business model.
The framework provides guidance on securities law requirements applicable to platforms whether trading crypto assets that are securities or derivatives, or contractual rights or claims to underlying crypto assets such as bitcoin or ether.
It also identifies interim approaches that are available to CTPs, which will foster innovation and flexibility, whilst ensuring they operate within a regulated environment.
Furthermore, the notice offers an overview of the key risks related to CTPs and areas where requirements can be tailored, if key risks are addressed and investor protection is not compromised.
Finally, the regulators have explained the process for submitting an application.
CSA chair Louis Morisset said, “The guidance in our notice details steps platform operators need to take to comply with securities legislation as they prepare to fully integrate into the Canadian regulatory structure.
“To bring their operations into compliance, CTPs should contact their local securities regulator now to discuss the registration process and address applicable requirements.”
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