Canadian regulators eye framework to cover crypto trading platforms
Crypto trading platforms don't fit the existing regulatory structure. A new policy framework for crypto trading platforms is forthcoming
TORONTO – The regulatory bodies that oversee Canada’s stock markets are seeking feedback on what rules should be established for trading platforms for cryptocurrencies such as Bitcoin, Ethereum and Ripple.
The provincial regulators represented by the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada published their proposed framework on Thursday.
The CSA says crypto trading platforms don’t necessarily fit the existing regulatory structure because some of their functions are similar to regulated exchanges but other functions are similar to dealers, custodians and clearing agencies.
The consultation paper invites interested parties to submit written comments on a variety of questions by May 15. The responses will help the regulators as they craft a new policy framework for crypto trading platforms.
Among other things, the paper asks if it’s appropriate for the platforms to set the rules for their own marketplaces.
The paper also asks what standards should be in place to limit the risk of crypto assets being lost or stolen and what type of insurance coverage the platforms should be required to obtain.