The Canadian Securities Administrators this week provided an update for crypto asset trading platforms.
Investors have “experienced significant harm” from the collapse of unregulated value-referenced crypto assets, market disruptions, and the activities of unregistered crypto market participants, according to the CSA.
The CSA warns that “continues to have investor protection concerns” regarding the trading of unregulated crypto assets.
Originally, the commission said trading platforms had until April to cease buying and selling unregulated crypto, a deadline which has been extended through October.
“The CSA has actively engaged with CTPs and crypto industry participants and remains open to proposals for alternative ways to address investor protection concerns raised by VRCAs,” the commission stated.
Investors are reminded that holding a crypto contract with a crypto trading platform “does not offer the protections generally afforded to holding regulated deposits,” cautioning Canadians “that all crypto assets … carry risk, and are not the same as fiat currency.”
Prior financial scandals prompted the Canadian Securities Administrators to warn investors that trading in crypto assets comes “with elevated levels of risk that may not be suitable for many investors, in particular retail investors.”
The CSA has noted that, generally speaking, “trading crypto assets is a speculative activity, and the value and liquidity of crypto assets are highly volatile.”
Canada is recognized as one of the most crypto-aware nations in the world with roughly five million coin holders.
Leave a Reply