Canada requires crypto exchanges to pre-register within 30 days News โธ Canada โธ Regulation
Canada requires crypto exchanges to pre-register within 30 days
The applicants will have to separate assets held for local clients, restrict margin and leverage trading, and ceasing the sale of stablecoins without permission.
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Updated: Feb. 23, 2023 at 4:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Canadian Securities Administration (CSA) released a notice on Feb.22 requiring crypto exchanges that plan to operate nationwide to undergo a pre-registration process within 30 days.
CSA chair Stan Magidson explained the reasoning behind this decision by stating:
โRecent insolvencies involving several crypto asset trading platforms highlight the tremendous risks associated with trading crypto assets, particularly when conducted on unregistered platforms based outside of Canada,โ
The pre-registration process includes segregating crypto assets held on behalf of Canadian clients and suspending offering margin, credit, or other forms of leverage trading to Canadian users.
Exchanges will also have to stop offering stablecoins until written consent is secured from the CSA.
The CSA also reminded Canadians that crypto trading came with an “elevated” level of risk, which may not be suitable for many investors.
Posted In: Canada, Regulation
Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
