Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

share save 171 16 - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

CSA |  Jan 16, 2020

CSA logo - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

Montreal - The Canadian Securities Administrators (CSA) today published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets, to help these entities to determine situations where securities legislation may or may not apply.

“The evolving landscape of the industry prompts us to clarify our regulatory framework so as to better support fintech businesses seeking to offer innovative products, services and applications in Canada,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “As we continue to consider the comments and responses to the consultation we launched last year, the staff notice published today will help platform operators to determine whether their activities are subject to securities legislation.”

The notice describes situations where securities legislation will and will not apply. For example, securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.

The relevant determination will depend on the facts and circumstances, including the obligations and intention to provide immediate delivery of the crypto asset. The notice provides guidance on what constitutes immediate delivery, together with a detailed example of a situation where securities legislation does not apply.

See:  IIROC Announces Crypto-Asset Working Group Members

The CSA and the Investment Industry Regulatory Organization of Canada (IIROC) continue to review the comments and responses to Joint CSA/IIROC Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms. We anticipate publishing a summary of comments and responses along with guidance on the regulatory framework applicable to crypto-asset trading platforms that are subject to securities legislation later this year.

CSA Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets is available on jurisdictions’ websites.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.

For Investor inquiries, please refer to your respective securities regulator. You can contact them here

For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca:

View release here

Download CSA Staff Notice 21-327Guidance on the Application of Securities Legislationto Entities Facilitating the Trading of CryptoAssets


NCFA Jan 2018 resize - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset TradingFF Logo 400 v3 - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Tradingcommunity social impact - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading
NCFA COVID 19 letter to government to support Fintechs and SMEs - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

Coronavirus resources 800 1 - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

NCFA Newsletter subscribe600 - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

FFCON20 Homepage Banner v3 updated - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading

 

share save 171 16 - Canadian Securities Regulators Publish Additional Guidance for Facilitating Crypto Asset Trading