Global fintech and funding innovation ecosystem

CSA Updates on Value-Referenced Crypto Assets Regulation

Crypto Regulation | April 25, 2024

Freepik frimufilms bitcoin - CSA Updates on Value-Referenced Crypto Assets Regulation

Image: Freepik/frimufilms

Canadian Regulators Extend Deadline for value-referenced crypto assets (VRCA) Compliance to October 31, 2024

Canadian securities regulators recently updated their interim approach to the regulation of VRCAs, which are designed to maintain stable values by referencing fiat currencies or other assets. This update, important for both crypto trading platforms and investors, underscores ongoing efforts to harmonize crypto regulation across Canadian territories and provinces.

See:  Canada to Enforce Cryptoasset Reporting by 2027

  • VRCAs aim to achieve stability through backing by fiat currencies or a combination of other assets. These include fiat-backed crypto assets (FBCAs), which replicate the value of currencies like USD or CAD through adequate reserve holdings by the issuer.
  • As per the Canadian Securities Administrators (CSA), registered crypto trading platforms, or those with a pre-registration undertaking, were initially set an April 30, 2024 deadline to comply with the terms allowing the trading of FBCAs. However, due to technical challenges expressed by platforms, this deadline has been extended to October 31, 2024.

In Closing

The CSA continues to caution investors about the inherent risks associated with crypto assets, even those meeting regulatory standards. They emphasize that compliance with interim terms does not equate to endorsement or a guarantee of safety​.


NCFA Jan 2018 resize - CSA Updates on Value-Referenced Crypto Assets RegulationThe 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, artificial intelligence, 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 - CSA Updates on Value-Referenced Crypto Assets RegulationFF Logo 400 v3 - CSA Updates on Value-Referenced Crypto Assets Regulationcommunity social impact - CSA Updates on Value-Referenced Crypto Assets Regulation

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - CSA Updates on Value-Referenced Crypto Assets Regulation




 

Leave a Reply

Your email address will not be published. Required fields are marked *

five × five =