The Ontario Securities Commission (OSC) has prohibited local cryptocurrency trading platforms from offering margin and leverage for any Canadian client, given the "recent events in the crypto market."
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The Canadian financial regulator has also updated other guidelines set by the Canadian Securities Administrators (CSA), by requiring crypto exchanges to segregate customers' funds "with an appropriate custodian."
The OSC says the custodians can be qualified so only if they are regulated by a "financial regulator in Canada, the US, or a similar jurisdiction with a supervisory regime for conduct and financial regulation."
"CSA members will contact registered crypto trading platforms individually to discuss the application of the expanded terms and conditions to those firms. The CSA will publish further details about this updated approach in the future," the OSC added.
The move comes after the OSC and the CSA imposed new limitations on Canadian crypto investors, by decreasing the amount of altcoins they can purchase in several Canadian provinces.
Newton and Bitbuy were the first Canadian crypto platforms to implement the limitations, according to their updated FAQs. Newton said that the limits do not apply to those, who live in British Columbia, Alberta, Manitoba, or Quebec.
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