Canadian crypto trading platforms (CTPs) are approaching a crucial deadline to finalize their compliance with new regulatory requirements.
The Canadian Investment Regulatory Organization (CIRO) and the Canadian Securities Administrators (CSA) have issued a reminder that they must complete their transition to full investment dealer status and become CIRO members.
Back in March 2021, CTPs were given a temporary period to operate with limited status while they worked on getting CIRO membership. Now, this temporary period is ending, and the CSA expects CTPs to have fully understood and started following the new rules.
There are currently 15 CTPs in Canada including Coinsquare which has already achieved CIRO membership, becoming the first to do so in October 2022 after applying in November 2020.
The CSA started setting up rules for CTPs in August 2022, focusing on protecting customers. The regulations were further tightened in February 2023 in response to challenges in the crypto market, including issues with stablecoins.
While some exchanges like Kraken and Gemini have quickly adjusted to the new rules, others such as OKX, dYdX, Paxos, ByBit, and Binance have chosen to leave the Canadian market.
The CSA has also given guidance for investment firms dealing with crypto and has expanded on these rules earlier this year. With Bitcoin exchange-traded funds available in Canada since 2021, the country is creating a clearer framework for crypto trading.
Also Read: ByBit Halts Operations in France Due to Regulatory Changes
