The Canadian Securities Administrators (CSA) says crypto trading platforms are now expected to make certain commitments that address investor protections while their registration applications are being reviewed.
The umbrella organization of provincial securities regulators says Crypto.com and Coinsquare Capital Markets Ltd. are the first to submit the pre-registration undertakings.
The CSA says provincial regulators are in discussion with other crypto trading platforms about following suit, and that regulators may take action if a crypto trading platform is not prepared to file an undertaking.
The commitments cover a range of issues, including not offering advice to clients, not providing margin trading, and setting some limits on how much clients can trade.
In June, the Ontario Securities Commission went after two crypto international trading platforms that failed to adhere to provincial securities law, securing a permanent market participation ban on one and reaching a settlement with the second.
Several crypto-trading platforms are already authorized in Canada including Coinberry Ltd., Bitbuy Technologies Inc., and Wealthsimple Digital Assets Inc.