Canadian regulator tightens grip on crypto trading platforms

Quick Take

  • Canada’s financial watchdog is enforcing stricter requirements for crypto firms following the collapse of FTX crypto exchange last month.
  • Companies offering services to Canadian residents will fall under the same rules.

Canada’s financial regulator is expanding the provisions crypto trading platforms are expected to adhere to in light of the FTX exchange collapse last month. Licensing will also see tighter enforcement, including firms based outside of the country but accessible to citizens.

The Canadian Securities Administrators (CSA) outlined stricter requirements for crypto firms in a statement published on Monday. Measures include separating client and proprietary business assets, ensuring client assets are held with an “appropriate custodian,” and prohibiting offering margin or leverage for Canadian users. 

Platforms outside of Canada that offer services to Canadians will fall under the same requirements. 

The CSA required crypto firms to commit to acquiring registration in August by obtaining a pre-registration undertaking (PRU) license. This meant the same requirements applied as registered platforms. 

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