The Canadian Securities Administrators (CSA) has taken a step towards providing clarity and guidance for the trading of stablecoins in Canada. The CSA, which regulates the securities industry in the country, has issued interim guidelines that may allow the continued trading of certain fiat-backed crypto assets, subject to specific conditions.
According to the CSA, stablecoins could be regarded as securities, and as such, issuers are required to maintain appropriate reserves of assets. Additionally, issuers must make information related to governance, operations, and asset reserves publicly available. These measures are aimed at safeguarding investors and ensuring the integrity of the Canadian capital markets.
The CSA’s move comes at a time when Canada is implementing stricter regulations for the crypto industry. Coinbase, a prominent US-listed exchange, suspended trading for three tokens (RAI Reflex Index, Dai, and Tether) in Canada due to these regulatory changes. However, the exchange continues to offer wallet access for deposits and withdrawals.
Despite the trading suspension, Coinbase is actively expanding its presence in the Canadian market. The exchange recently launched a number of offerings, including instant fund deposits through Interac e-Transfer and a complimentary 30-day membership to Coinbase One.
Canada’s regulatory framework has been tightening, with the Ontario Securities Commission even threatening enforcement actions against non-compliant platforms. Coinbase’s emphasis on compliance reflects the broader trend of crypto exchanges grappling with increasingly stringent regulations worldwide.
It is important to note that the information provided in this article is accurate at the time of writing. Readers are advised to independently verify the facts and consult with professionals before making any decisions based on this content.
Disclaimer: This article is provided for informational purposes only. The views expressed in this article are solely those of the author and do not necessarily represent the views of BeInCrypto or its partners. The information contained herein is not investment advice, nor is it a solicitation to buy or sell any cryptocurrency or security. Readers are encouraged to conduct their own research and seek the advice of a qualified professional before making any investment decisions.