Crypto crackdown: Canada tightens rules on cryptocurrency trading platforms in wake of FTX collapse
-
Loading... - Felipe Nicolas
- 20 Mar 2023
- 60 Views
- 0 Like
- 0 Comment
Crypto trading platforms have 30 days to assure regulators they’re following some specific rules if they want to keep serving Canadian clients.
The Ontario Securities Commission and other Canadian securities regulators are cracking down on unregulated cryptocurrency trading platforms in the wake of the spectacular bankruptcy of FTX, a situation one regulator called “an emergency.”
Wednesday, the OSC and the national umbrella organization Canadian Securities Administrators announced details of a crackdown they had proposed in December.
Crypto trading platforms now have 30 days to assure regulators they’re following some specific rules if they want to keep serving Canadian clients. Among the rules are making sure client cryptocurrency is segregated from the firm’s own funds and a ban on offering margin trading or other forms of debt. Firms are also not allowed to offer stablecoins — a form of cryptocurrency pegged to the underlying value of an asset such as a traditional currency or gold — unless they get specific permission from regulators.
