New rules for the Regulation of Crypto Exchange Launched in Canada
Canadian regulators have developed a new set of laws concerning platforms for trading cryptocurrency assets
Two regulatory organisations (CSA and IIROC) worked on the creation of the new rules. The result of their work was new guidelines on cryptocurrencies.
First of all, they provide for the licensing of some platforms of cryptocurrency assets. The exchanges are subject to mandatory licenses:
- Customers' cryptocurrencies
- Providing trading with margin or leverage
According to experts, only a company registered as an investment dealer and a member of IIROC can trade with margin to its clients.
The same rules apply to platforms that provide investment contracts for cryptocurrency. They must be registered in the relevant category and IIROC.
Exchanges that do not hold cryptocurrencies will be highly likely to be deprived of the need to undergo the licensing procedure. However, in any case, such a crypto platform should apply to the regulator of the relevant jurisdiction and either pass the licensing or get an exemption.
Under the new regulations, most Canadian and foreign sites will have to be licensed. Only those who have received a license or exemption will be able to provide services.
Regulators promise a flexible approach. It will be enough to register as a limited-access company to work legally in Canada. The main thing is that the platform's activity meets the requirements of the regulator.