In order to better comply with the securities regulation, the Canadian Securities Administrators (CSA) mandated that crypto trading platforms are required to undertake a pre-registration with their principal regulators.
Canada-based Coinsquare Capital Markets and Crypto.com are two of the platforms that complied and filed the undertakings.
Trading platforms will be required to officially agree to abide by the investor protection-related terms and conditions. By filing the undertaking, crypto trading platforms can keep operating while their CSA registration applications are being reviewed.
The new undertaking is one of the guidance introduced as an “interim approach” to the crypto asset trading platforms’ securities laws released by CSA and the Investment Industry Regulatory Organization of Canada (IIROC) in March 2021.
Coinsquare Capital Markets and Crypto.com filed the undertakings with their principal regulator, Ontario Securities Commission. According to CSA’s announcement, it was discussing about the undertaking with other platforms.
Canadian crypto trading platforms are lining up to get registered. Before receiving full registration, they can gain “restricted dealer” status. As for platforms that have applied to become restricted dealers, they are still required to file the newly instituted undertaking.
Crypto.com stated that the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Autorité des marchés financiers (AMF) of Quebec have already regulated the undertaking.
“The North American Market, and Canada specifically, represent a substantial area of crypto market’s growth”, said Kris Marszalek, CEO of Crypto.com.
Member organizations could “take action” against platforms that do not comply to file an undertaking, according to CSA.
