Canada’s Top Markets Regulator Cracks Down on Cryptocurrency Exchanges

The Canadian Securities Administrators (CSA) is set to introduce new requirements for cryptocurrency exchanges operating in Canada, aimed at tightening its grip on unregistered trading platforms.

Compliance Issues in the Crypto Market

Compliance issues have been a growing concern in Canada’s burgeoning crypto market. The collapse of FTX and other high-profile failures in the industry has hastened the CSA’s resolve to take action. The regulator is expected to force unregistered exchanges to make commitments to pursue registration.

New Requirements for Exchanges

The new requirements are set to be introduced later this month, but sources close to the matter have revealed that they will be “onerous” and could crush the industry overnight by imposing costly requirements and altering the regulatory landscape. The changes are expected to impact some of the largest global exchanges operating in Canada, including Binance Canada.

Impact on Major Exchanges

• Binance Canada, which has previously clashed with Ontario’s Securities Commission (OSC), is likely to be affected.
• Coinbase, a US-regulated exchange, operates in Canada under the purview of Quebec’s Autorité des marchés financiers (AMF). Sources suggest it may have the flexibility to shift its operations to the OSC if deemed necessary.

Broader Global Effort

The move by the CSA is part of a broader global effort by regulatory bodies to rein in the crypto industry. The US Securities and Exchange Commission has already ramped up enforcement efforts, and other G-7 countries are following suit.

Conclusion

The introduction of new requirements for cryptocurrency exchanges operating in Canada marks a significant shift in the country’s approach to regulating the crypto market. While the changes may have far-reaching consequences, they are aimed at ensuring greater compliance and transparency in the industry.