For these exchanges working in Canada – together with these primarily based elsewhere however working within the nation – it was introduced in August that unregulated exchanges could be anticipated to decide to a pre-registration enterprise (PRU) to stick to the identical phrases and situations as regulated platforms.
Now, the CSA says that if a PRU has not been delivered to a platform’s principal regulator by a deadline it will likely be shortly saying, it would think about motion together with enforcement to deliver them into compliance.
It has additionally expanded phrases to incorporate “necessities to carry Canadian purchasers’ belongings with an applicable custodian and segregate these belongings from the platform’s proprietary enterprise, in addition to a prohibition on providing margin or leverage for any Canadian shopper.”
Acceptable custodians will typically embrace these regulated by a monetary regulator “in Canada, the US, or an analogous jurisdiction with a supervisory regime for conduct and monetary regulation.”
The CSA is eager to emphasize that cryptos are high-risk investments and buyers ought to think about speaking to registered monetary advisors previous to deciding to spend money on the digital belongings.