New rules oblige Canadian bitcoin exchanges to comply with securities laws

The Canadian Securities Administrators (CSA) have introduced new guidance stating that mostlocal cryptocurrency exchanges are required to comply with securities laws.

According to the document, platforms on which crypto-assets, which are securities or derivatives, are traded must comply with the requirements of the above-mentioned legislation.

Moreover, such a law may alsoapply to sites trading «contracts or instruments that are derivatives based on crypto assets». The legislation also covers platforms that “facilitate the purchase and sale of cryptoassets, including cryptoassets that are commodities, since a user right to a cryptoasset may itself be a derivative.”

New rules include complianceabout securities of exchanges that control client funds, even if they do not exchange assets considered as securities or derivatives.

At the same time, non-custodial platforms are likely not to fall under the new leadership.

«We are aware that some platform operatorsbelieve that their platforms are not subject to securities laws because they only allow transactions in crypto assets, which are not derivatives or securities themselves. However, some platforms provide their users with a contractual right to the underlying crypto asset rather than delivering it outright. We conclude that these platforms are generally subject to securities laws», —the manual says.

The CSA also emphasized that foreignPlatforms that serve Canadian users must comply with Canadian securities laws. Otherwise, the regulator is ready to «take enforcement measures» against such sites.

Recall that in July, Canadian crypto-exchanges were required to register and report transactions worth over 10 thousand Canadian dollars.