Canadian Authorities are taking a rigid stand due to recent turmoil in the crypto market. In order to protect the country’s users, CSA has placed a prohibition on crypto margin and leverage trading.
The Canadian Securities Administrator has updated regulations for crypto trading platforms operating in Canada. CSA is calling it as a measure to strengthen its approach to oversight of crypto trading platforms by expanding existing requirements for platforms operating in Canada.
Per the new regulations, all crypto trading firms registered in Canada or foreign based but are accessible to Canadians will have to comply as they will be regarded as operating in Canada for the purposes of securities regulation.
Crypto trading platforms agree to comply with expanded terms and conditions, which will include, among other things, requirements to hold Canadian clients’ assets with an appropriate custodian and segregate these assets from the platform’s proprietary business and a prohibition on offering margin or leverage for any Canadian client.
Custodians will generally qualify if they are regulated by a financial regulator in Canada, the U.S., or a similar jurisdiction with a supervisory authority for conduct and financial regulation.
Also Read: U.K. to announce Plans for Regulation of the Crypto Sector
