CSA Releases Guidance that Crypto Trading Falls Under Securities Law

Abstract : Canadian Securities Administrators (CSA) publishes the guidance that all Canadian crypto exchanges will fall under national securities law, including the assets being traded are considered securities or derivatives, securities legislation applies to the trading platform.

ChainDD
ChainDD

Jan 16

According to the latest published Canadian Securities Administrators (CSA) guidance, all Canadian crypto exchanges will fall under national securities law, including the assets being traded are considered securities or derivatives, securities legislation applies to the trading platform. 

The guidance also states that exchanges that maintain control of customer funds are subject to such laws, even if they don't necessarily trade assets that might be considered securities or derivatives. Non-custodial exchanges – that is, trading platforms that don't handle or control customer funds – appear more likely to not fall under them. 

Adam Goldman, the founder and president of Canada-based company Bitbuy said that having a clear regulatory environment can promote the development of the Canadian cryptocurrency industry and provide a clear path to legal participation in the financial system while protecting Canadians' rights.

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