Canadian Crypto Platforms Face Regulatory Deadline From CIRO

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As a seasoned researcher who has closely followed the dynamic world of cryptocurrencies, I find myself intrigued by the current situation unfolding in the Canadian crypto trading landscape. The approaching deadline for compliance with new regulatory requirements is undoubtedly a make-or-break moment for many players in this sector.

Crypto trading platforms operating in Canada have reached a significant point where they must complete their adherence to the latest regulatory standards by a specific due date.

The Canadian Investment Regulatory Organization (CIRO) and the Canadian Securities Administrators (CSA) have been told to finish the process of upgrading to being fully-fledged investment dealers and joining the CIRO by a certain deadline.

Initially in March 2021, CTPs were granted a provisional timeframe to function under restricted conditions as they sought CIRO membership. However, this transitional period is now drawing to a close, and the CSA anticipates that CTPs have grasped and are complying with the updated regulations.

Crypto trading platforms are advised by both CSA (Canadian Securities Administrators) and CIRO (Investment Industry Regulatory Organization of Canada) to give preference when processing applications for investment dealer registration and CIRO membership.

— CSA_News (@CSA_News) August 6, 2024

15 Canadian Trade Platforms (CTPs) exist at present, with Coinsquare being one of them and having already been granted membership in the Compliance Initiative Regulatory Organization (CIRO), making it the first to do so in October 2022, following its application submission in November 2020.

Beginning in August 2022, the Consumer Safety Agency initiated guidelines for Crypto Trading Platforms (CTPs), primarily focusing on customer protection. These regulations were subsequently reinforced in February 2023, following difficulties encountered within the crypto market, particularly problems associated with stablecoins.

Some platforms like Kraken and Gemini have swiftly adapted to the latest regulations, whereas others such as OKX, dYdX, Paxos, ByBit, and Binance have decided not to continue operating in the Canadian market.

As a crypto investor, I’ve taken note of the recent guidance provided by the Canadian Securities Administrators (CSA) regarding investment firms dealing with cryptocurrencies. They’ve further clarified these rules earlier this year, which is excellent news for us in the crypto space. Since 2021, Bitcoin exchange-traded funds have been available in Canada, signaling a more defined pathway for trading digital currencies in our country. This development not only enhances transparency but also instills confidence in the growing crypto market.

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2024-08-07 05:42