The Canadian Securities Administrators (CSA) say crypto trading platforms are now expected to make certain commitments affecting investor protection while their registration applications are reviewed.
The umbrella organization of provincial securities regulators says Crypto.com and Coinsquare Capital Markets Ltd. are the first to submit the pre-registration commitments.
Bitcoin falls below $20,000 for the first time since 2020
The CSA says provincial regulators are in discussions with other crypto trading platforms to follow the lawsuit and that regulators could take action if a crypto trading platform is unwilling to file a commitment.
The commitments cover a range of issues including no advice to clients, no margin trading and setting some limits on how much clients can trade.
Crypto scams are on the rise across New Brunswick
In June, the Ontario Securities Commission prosecuted two international crypto trading platforms that failed to comply with the province’s securities law, obtaining a permanent ban from market participation for one and reaching a settlement with the second.
Several crypto trading platforms are already licensed in Canada, including Coinberry Ltd., Bitbuy Technologies Inc. and Wealthsimple Digital Assets Inc.
© 2022 The Canadian Press
https://globalnews.ca/news/9061713/securities-regulators-protections-crypto-investors/ Securities regulators call for more protections for investors in crypto trading platforms – National