MONTREAL and TORONTO, April 17,
2024 /CNW/ - The Canadian Securities
Administrators (CSA) is providing an update today to
crypto asset trading platforms (CTPs) on the
implementation of its interim approach to value-referenced
crypto assets (VRCAs).
A VRCA is a crypto asset that is designed to
maintain a stable value over time by referencing the value of a
fiat currency or any other value, right, or combination
thereof. VRCAs include fiat-backed crypto assets
(FBCAs), which seek to replicate the value of a single fiat
currency by the issuer setting aside an adequate reserve of assets
denominated in the fiat currency.
The CSA issued Staff Notice 21-333 (the Staff Notice) on
October 5, 2023. This notice set out
interim terms and conditions for which the CSA would consent to
registered CTPs – or those that provided a pre-registration
undertaking – to continue allowing their clients to buy, deposit,
or enter into crypto contracts to buy or deposit
VRCAs.
The Staff Notice also included a deadline of April 30, 2024. By this date, the CSA expected
that CTPs would no longer allow clients to buy, deposit, or enter
into crypto contracts to buy or deposit FBCAs that do
not comply with the interim terms and conditions.
As part of the CSA's ongoing engagement with Canadian
crypto market participants on the implementation of
its interim approach, and in response to technical issues CTPs
raised with meeting the April 30
deadline, the CSA is extending the April
30 deadline to October 31,
2024.
The CSA continues to welcome submissions on the appropriate
long-term regulation of VRCAs. CTPs and VRCA issuers should contact
their principal regulator with any questions or to discuss
further.
The CSA cautions Canadian investors that all crypto
assets, including any VRCAs that satisfy the interim terms and
conditions, carry risk, and are not the same as fiat currency. Even
if a specific VRCA meets the interim terms and conditions, that
doesn't mean the CSA approves or endorses the VRCA, guarantees its
safety, or that it is compliant with Canadian securities laws. To
learn more about crypto assets, visit the CSA's
Investor Tools Crypto Assets page.
The CSA, the council of the securities regulators of
Canada's provinces and
territories, coordinates and harmonizes regulation for the Canadian
capital markets.
For media inquiries, please contact:
Ilana
Kelemen
Canadian Securities
Administrators
media@acvm-csa.ca
|
JP Vecsi
|
Ontario Securities
Commission
media_inquiries@osc.gov.on.ca
|
For investor inquiries, please contact your local
securities regulator.
SOURCE Canadian Securities Administrators