CSA and CIRO stress compliance for crypto trading platforms, emphasizing registration and CIRO membership
The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) remind crypto trading platforms (CTPs) to comply with Canadian securities laws by prioritizing their applications for registration as investment dealers and CIRO membership.
On March 29, 2021, the CSA, and the Investment Industry Regulatory Organization of Canada (now CIRO) published Staff Notice 21-329 Guidance for Crypto-Asset Trading Platforms: Compliance with Regulatory Requirements, offering guidance on securities law requirements for CTPs.
In Canada, CTPs facilitating trading in either crypto assets that are securities and/or derivatives or instruments or contracts based on crypto assets that are securities or derivatives, are expected to register as investment dealers and become CIRO members, overseeing this type of activity.
Most Read
The staff notice outlined an interim approach, allowing CTPs to operate as restricted dealers in a regulated environment for a time-limited period while working towards CIRO membership.
CSA members expected CTPs to actively seek registration as investment dealers and CIRO membership by the end of this period, generally two years.
Given the elapsed time, CSA members expect CTPs to have reviewed and understood the requirements to become investment dealers and CIRO members, and to be actively engaged with CIRO on their applications.
Moving forward, CSA members do not intend to continue the interim approach for time-limited restricted dealer registration for CTPs as described in the staff notice.
CTPs working actively with CSA members to complete their registration should contact their principal regulator to discuss if time-limited registration as a restricted dealer is appropriate.
