• Welcome to forex.pm forex forum binary options trade. Please login or sign up.
 

Canada's CSA Labels Stablecoins as 'Securities and/or Derivatives'

Started by forex4you, Dec 14, 2022, 04:29 am

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

forex4you

Canada's CSA Labels Stablecoins as 'Securities and/or Derivatives'

<p>The Canadian Securities Administrators (CSA) is strengthening its oversight of the cryptocurrency industry following the collapse of FTX. It has expanded its requirements for crypto platforms operating in <a href="https://www.financemagnates.com/tag/canada/" target="_blank" rel="follow">Canada</a>.</p><p>The regulator will directly contact registered crypto platforms to discuss the new conditions while setting a deadline for registering unregistered platforms. Revamped conditions were justified, citing "recent events in the crypto market."</p><p>A previous regulatory notice issued last August already requires unregistered crypto platforms offering services in Canada to provide the regulators with <a href="https://www.financemagnates.com/cryptocurrency/news/cryptocom-signs-a-pre-registration-undertaking-with-osc-in-canada/" target="_blank" rel="follow">pre-registration undertakings </a>that essentially commit them to comply with the terms and conditions being followed by registered firms.</p><p>"Crypto trading platforms giving these undertakings agree to comply with expanded terms and conditions that will include, among other things, requirements to hold Canadian clients' assets with an appropriate custodian and segregate these assets from the platform's proprietary business, as well as a prohibition on offering margin or <a href="https://www.financemagnates.com/terms/l/leverage/" target="_blank" id="df61d302-43af-41c3-a06a-e37426a0c2c0_1" class="terms__main-term">leverage</a> for any Canadian client," the CSA stated in the release published on Monday.</p><p>All of these rules will apply to <a href="https://www.financemagnates.com/cryptocurrency/regulation/canadas-ontario-regulator-bans-crypto-exchange-kucoin-fines-bybit/" target="_blank" rel="follow">Canada-based crypto companies</a>, as well as overseas platforms that are offering services to Canadians. This condition will bring several small and large overseas platforms under the purview of the Canadian regulator's jurisdiction.</p><p>Check out the recent London Summit session on the question "Will Crypto Fizzle Out or Here to Stay?"</p><p>Stablecoins</p><p>Additionally, the CSA is  concerned with the circulation of <a href="https://www.financemagnates.com/cryptocurrency/the-ongoing-battle-between-stablecoins-and-the-us-dollar/" target="_blank" rel="follow">stablecoins</a>, which are <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a> pegged to fiat or other assets. The regulator is now considering stablecoins as "securities and/or derivatives."</p><p>The situation for the crypto exchanges onboarding Canadians gets complicated as the regulator stated: "Crypto trading platforms that are registered or that have entered into a pre-registration undertaking are reminded that they are prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative."</p><p>These crypto platforms are expected to scrutinize all listed digital assets to determine their clients' exposure to "a security and/or derivative."</p><p>"Even with the adoption of these measures, crypto assets or financial products relating to crypto assets are high-risk investments," the CSA added. "Canadian investors are urged to exercise caution and consider seeking advice from a registered investment advisor before investing in crypto."</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Canada's CSA Labels Stablecoins as 'Securities and/or Derivatives'
Forex4you offers wide range of trading accounts with DDE, NDDE and STP executions including more than 100 instruments. Forex4you is based on MetaTrader 4 trading platform. Clients have the advantage of daily technical and fundamental analysis, one-click trading, economic calendar, mobile trading applications, news and forecasts from Dow Jones (UK) and signals from Trading Central (US). In addition, Forex4you offers Forex dictionary, educational materials and lot of "How to" guides about Forex.

forex4you.com   share4you.com   betiforex.com Forex  beginners-guide-to-iq-option-complete-review forex4you review forex4you Forex4you Review - One of the Best Forex Brokers Forex4you Review - One of the Best Forex Brokers forex4you - PAMM forex broker review and feedback from traders forexbinaryoption.ae aroundworld24.com  Affiliate programs  Forex4you Affiliate programs   



forex4you.com