A step further in the regulation of cryptocurrency trading platforms

Securities regulators can take action on platforms that won’t make commitments, says a statement from the securities regulators. CSAa grouping of the various provincial and territorial agencies that oversee financial markets in Canada.

In March 2021, the CSA unveiled a regulatory framework for platforms that facilitate the trading of cryptocurrencies in Canada. The opinion did not have the force of law, since it is the provinces that govern the financial markets in Canada, according to Jean Bernard Ricard, lawyer at the firm Dentons.

It was an outline to indicate that the regulations are going to apply one way or anotherexplains Mr. Ricard.

The Ontario Securities Commission (OSC) then forced platforms that allow Ontarians to trade cryptocurrencies, such as bitcoin and ethereum, for example, to register in order to continue their activities.

The registration process, which is done on a case-by-case basis, can be complex, says Mr. Ricard. There is no deadline that is officially [donné]he explains.

By requiring platforms to respect commitments pending approval of their application for registration, CSA wish to enforce the regulatory framework immediately.

So far, two platforms have made commitments to the OSCthat is Coinsquare Capital Markets Ltd. and Crypto.com.

For the lawyer for the Dentons firm, the regulatory work of the past few months has clarified the legal vagueness surrounding the activities of these platforms. While several details remain to be clarified, he explains that the imposed framework is very similar to that which exists for conventional brokerage platforms.

We don’t reinvent the wheel […] We look at what these platforms do and it looks a lot like trading platforms and brokers that already exist on the market.he argues.

Éric Parent, president of the cybersecurity firm EVA Technologies, underlines the difficulty of regulating cryptocurrency transactions. It’s not easy to control because it’s totally decentralizedhe said.

He maintains that the authorities still have access to very little data on the transactions carried out on these platforms.

In an email sent to Radio-Canada, the CSA explain that they will continue their efforts to ensure that crypto-asset trading platforms comply with the laws. They thus wish to ensure the protection of investors and encourage fair competition in the market.

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