Canadian Crypto Platforms Must Commit to Investor Protection

Updated by Geraint Price
In Brief
  • The Canadian Securities Administrators (CSA) are providing a critical update to crypto trading platforms.
  • Binance to continue operating in Ontario after cooperating with Canadian regulators.
  • Cryptocurrency adoption in Canada is on the rise, according to a new bank study.
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The Canadian Securities Administrators (CSA) are now expecting all cryptocurrency trading platforms to sign a commitment letter agreeing to certain conditions before they can operate in Canada.

The CSA is ready to take action against any crypto platform that fails to meet its expectations.

Ontario Securities Commission has published the first pre-registration requirements for crypto asset trading platforms. The Canadian Securities Administrators published the registration, which was filled by Coinsquare Capital Markets and Crypto.com.

In order to operate in the province of Ontario, trading platforms will have to meet a number of conditions relating to anti-money laundering, cybersecurity, and know your customer (KYC) procedures.

Last year, the CSA and the Investment Industry Regulatory Organization of Canada published a joint statement on initial coin offerings (ICOs), warning that these products may be subject to securities laws.

Crypto.com agrees to Canada security regulations

Crypto.com became the first cryptocurrency exchange to commit to offering digital products and services that fully comply with Canadian securities laws.

The Pre-Registration Undertaking is a legal document that all Canadian jurisdictions accept. It follows Crypto.com’s compliance with FINTRAC and the Autorité des Marchés Financiers (AMF) in Quebec’s financial regulations.

Crypto.com is targeting the sports industry as the next sector to be disrupted by cryptocurrency and blockchain technology, with an aim to serve as the bridge between the worlds of fiat and digital currencies.

The platform has officially sponsored the FIFA World Cup Qatar 2022. It has also tapped LeBron James for a Super Bowl commercial this year.

Binance to continue operating in Ontario

The cryptocurrency exchange platform will continue its operations in Ontario after signing a commitment letter with the Canadian Securities Administrators. The agreement comes as part of the CSA’s regulatory expectations for all crypto asset trading platforms. The move is seen as a way to legitimize the cryptocurrency industry and bring more mainstream investors into the space.

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