Following the various setbacks that the cryptocurrency ecosystem has been encountering for some time, all supported by the FTX debacle, Canadian authorities have decided to ban futures contracts and cryptocurrency leverage for their citizens. They also urged Canadians to exercise caution when using cryptocurrencies.
Canada tightens the screws on cryptocurrency trading
The Canadian Securities Administrators (CSA)who are in charge of harmonizing the regulation of Canadian financial markets, have decided to take measures concerning the regulation of cryptocurrencies “ following recent events “.
Specifically, on Monday, December 12, the Ontario Securities Commission (OSC) published a press release describing new rules for cryptocurrency exchanges wishing to offer their services in Canada. These rules, applicable now, make the license necessary to operate in the territory more difficult to obtain. They also concern exchanges already registered in the territory..
Concretely, platforms wishing to operate or continue to operate in Canada will now have to remove their margin and leverage trading servicesand they will also be obliged to house their clients’ funds separately from their own funds.
In addition, according to the press release, the Canadian Securities Administrators consider that stablecoins may constitute securities and/or derivatives. As such, they remind exchanges that they have the ban on offering this type of product to Canadian citizens :
“Crypto trading platforms are supposed to have established policies and procedures to determine whether each crypto asset to which they provide exposure is a security and/or a derivative. »
Canadian authorities also took advantage to reiterate their distrust of cryptocurrencies and to encourage their fellow citizens to use only regulated platforms:
“Even with the adoption of these measures, crypto-assets or financial products related to crypto-assets are high-risk investments. […] Canadian investors are urged to exercise caution and consider seeking advice from a registered investment adviser before investing in cryptocurrencies. If they decide to pursue such an investment despite all the known risks, they should use a platform registered with CSA members. »
👉 Read also – Will French crypto companies soon have to cease their activities?
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Published by Editions Larousse
Source: Ontario Securities Commission
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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