Crypto.com CEO, Kris Marszalek, responded to the new development saying, “The North American market, and Canada specifically, represent a significant area of potential growth for the crypto market.”
New developments in the Canadian crypto space reveal that trading platforms must sign an undertaking to comply with terms and conditions relating to investor protection. Filing the undertaking will allow crypto trading platforms to continue operating during the review of their applications for registration with the Canadian Securities Administrators (CSA).
The CSA, a council of provincial and territorial securities regulators, has announced today that they expect crypto trading platforms to provide a pre-registration undertaking to their principal regulators as they make moves to comply fully with securities regulation.
Following this announcement, two platforms have already filed these undertakings. They are, Crypto.com and Canadian platform, Coinsquare Capital Markets. They filed the undertakings with Ontario Securities Commission, their principal regulator.
Crypto.com also pointed out that they were already regulated in Canada by the Financial Transaction and Report Analysis Center of Canada (FINTRAC) and the Autorité des marchés financiers (AMF) of Quebec.
The company’s CEO, Kris Marszalek, mentioned,
“The North American market, and Canada specifically, represent a significant area of potential growth for the crypto market.”
The CSA has also announced that they were in discussion with other platforms regarding the undertaking.
The new undertaking is a component of the “interim approach” introduced in the guidance on securities law requirements for crypto asset trading platforms released in March 2021 by the CSA and Investment Industry Regulatory Organization of Canada (IIROC).
The Canadian crypto trading platforms might face lengthy waits for registration. However, they can acquire “restricted dealer” status while waiting for the full registration. Platforms that have applied to be restricted dealers are still expected to file for the newly established undertaking.
The CSA has also pointed out that member organizations can take action against platforms that fail to file for the undertaking.
