MultiversX Tracker is Live!

Canada's Crypto Firms Get More Time to Comply with Stablecoin Rules

Finance Magnates

Cryptocoins News / Finance Magnates 55 Views

The Canadian Securities Administrators (CSA) has updated stablecoin regulations for crypto asset trading platforms. The CSA has also extended the compliance deadline for registered firms to meet new conditions or propose alternatives to protect investors.

CSA Extends Stablecoin Compliance Deadline

Despite global efforts to develop payment-based and banking-based regulatory frameworks for stablecoins, Canada lacks a structured regulatory regime for the asset class. However, the CSA expressed its commitment to protecting Canadian investors from the risks posed by trading these assets.

The administrators have now extended its previous deadline of October 31, 2024, to December 31, 2024, reportedly due to technical challenges faced by CTPs. This gives the platforms additional time to either comply with the required terms or propose alternative measures to safeguard investors.

“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 regulator wrote.

“To that end, the CSA is further extending the October 31 deadline to December 31, 2024. The extension is intended to provide more time for CTPs to either comply with the terms and conditions of their registration and exemptive relief decisions or to propose alternatives that address investor protection concerns,” the regulator explained.

A recent notice by the CSA set out the conditions for trading fiat-backed cryptocurrencies to mitigate investor risks. By December 29, 2023, CTPs were instructed to halt trading of any stablecoin other than those backed by a single fiat currency. Despite this, the CSA warned that holding value-referenced crypto assets on Canadian platforms still doesn’t provide the same protections as regulated deposits.

Regulatory Uncertainty Remains

Although several international jurisdictions are working on regulatory frameworks for stablecoins, Canada remains in limbo regarding a concrete structure for these assets. The CSA’s recent actions highlighted the uncertainty and caution surrounding the trading of unregulated or partially regulated cryptocurrencies in Canada.

The CSA advised investors to stay informed about the risks of crypto assets, which, unlike traditional fiat currencies like the Canadian or US dollar, can be highly volatile. The regulator has provided more details and educational resources on its investor tools crypto assets page as it continues to coordinate regulations across Canada’s capital markets.

The CSA’s approach highlights the growing regulatory scrutiny faced by crypto platforms in Canada as the regulator balances promoting innovation and protecting investors.

This article was written by Jared Kirui at www.financemagnates.com.
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.



Comments