No respite for regulators! Time passes, but problems keep coming. After the fiasco of the cryptocurrency sector in 2022, the Canadian Authorities are mobilizing once again and establishing new crypto rules, tightening the noose around the registration of exchanges.
New crypto rules, what place for stablecoins?
In August 2022, the Canadian Authorities (CSA) announced new crypto rules aimed at regulating the cryptocurrency sector. The latter came after the collapse of many ecosystems and while things seemed to be going well, Canada made a new exit that left little room for stablecoins.
On February 22, the Canadian Securities Administrators (CSA) issued an opinion. In which they set out the new registration requirements for crypto exchange platforms (CTPs). This new release comes a few months after the first, but where they just wanted to impose a purchase limit, regulators are now tending towards investor protection.
Thus, after the many turbulences of the crypto sector last year, exchanges wishing to register in Canada will have to respect certain rules. Among others, capital determination, asset separation, transparency, leverage and many more.
As a result, exchanges wishing to operate legally on Canadian territory will have to enter into a new version of the pre-registration commitments (PRU). Once registered, CTPs will receive the call from major regulators regarding the new expectations.
Although focusing on crypto assets, the opinion makes a point of honor on stablecoins. Indeed, he explains that under no circumstances should exchanges allow investors to buy or sell any crypto asset considered a security or a derivative. Therefore, assets backed by Fiat will have to obtain the approval of the Canadian Authorities beforehand.
The new notice from the Canadian authorities plunges stablecoins a little further into the abyss. Dollar-backed tokens are increasingly in the news and platforms find out how to get rid of it. What should we expect after these new crypto rules?
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