Canadian Regulators Introduce New Rules to Tackle Unregistered Crypto Platforms

Canadian regulators have strengthened their oversight of crypto trading platforms, setting new rules for unregistered platforms in a bid to protect investors.

In a notice published by the Ontario Securities Commission, the watchdog stated that it is requiring crypto trading platforms to undergo enhanced pre-registration that includes a prohibition on offering margin, credit, or any other forms of leverage.

The move comes after a series of bankruptcies that occurred over the past year, including FTX and Voyager Digital. The new rules also require platforms to provide information on the custody and segregation of crypto assets held on behalf of Canadian clients.

Additionally, trading platforms cannot allow the purchase or deposit of stablecoins without written consent. The move is part of the Canadian regulators’ efforts to ensure that crypto trading platforms operate in a way that does not pose a threat to Canadian investors.