Canada Issues Guidelines For Cryptocurrency Exchanges
Canadian authorities have issued new direction to regulate which digital currency trading platforms fall under derivatives law. The Canadian Securities Administration (CSA) clarified new provisions in the “Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets” published on the 16th of January, 2020 . In general, the agency drew a line between trading platforms that make an immediate delivery of a crypto assets to its users, and those that hold the transaction of crypto assets until the user makes a later request. Following an analysis of trading techniques on different platforms, the CSA concluded that some of them only provide their users with a contractual right or claim to a crypto asset , and do not immediately transfer it to a user. Such crypto trading platforms are subject to securities legislation, and thus fall under derivatives laws. The CSA will not apply securities laws to crypto exchanges on whic...