The Canadian Securities Administrators (CSA) has strengthened oversight of crypto-related companies, saying "recent insolvencies" highlight the tremendous risks associated with trading crypto assets.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
In a press release published on Wednesday, the CSA said all crypto businesses which operate in Canada are expected to go through an enhanced pre-registration process within 30 days.
This pre-registration will have to include a detailed description of how clients' funds are stored and segregated. The business will also have to confirm they do not offer margin, credit, or other forms of leverage to any Canadian client.
Moreover, the financial regulator also puts more scrutiny on stablecoins. Now, crypto companies have no right to offer stablecoins without the CSA's approval.
Last year, the Ontario Securities Commission (OSC) and the CSA imposed 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. However, Newton said that the limits do not apply to those, who live in British Columbia, Alberta, Manitoba, or Quebec.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange