Securities regulators publish guidance for crypto asset trading platforms

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TORONTO — Canadian securities regulators have published guidance for the regulation of crypto asset trading platforms.

The Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada put out the notice outlining the requirements.

It provides guidance for platforms trading crypto assets that are securities or derivatives, or contractual rights or claims to underlying crypto assets such as Bitcoin.

The regulators did not introduce new rules specifically applicable to crypto asset trading platforms, but rather provided guidance on how the existing rules may be tailored.

It follows a consultation paper published in 2019 that outlined a proposed regulatory framework and asked for comments.

The CSA and IIROC said they received 52 comment letters in response to the paper and consulted with industry stakeholders.

“The guidance in our notice details steps platform operators need to take to comply with securities legislation as they prepare to fully integrate into the Canadian regulatory structure,” said Louis Morisset, CSA chair and president and CEO of the Autorite des marches financiers.

“To bring their operations into compliance, CTPs should contact their local securities regulator now to discuss the registration process and address applicable requirements.”