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New Canadian rules for crypto trading platforms leave little room for stablecoins

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The Canadian Securities Administrator (CSA) issued a notice on February 22nd outlining its commitment to apply for registration in Canada on the password Asset Trading website (CTP). CTP will sign a new version of the pre-filing commitment (PRU), which is a legally binding document. Registered CTP will contact its key regulatory authorities to learn about compliance with the new expectations.

CSA wrote that due to the wave of CTP bankruptcy in 2022, a new commitment represents the maintenance of investment. A new commitment involves asset segmentation, financial leverage, asset clarity, clarity and many other issues. So far, the number of this notice is relatively large:

"CTP strictly forbids users to purchase data encryption assets (generally called smooth passwords) that can be used for reference according to the data encryption contract without the prior written consent of CSA."

The notice explains, "CTP is prohibited from allowing Canadian customers to sign password contracts, and the transaction itself is the password asset of securities and / or derivatives. [.] Relevant staff feel that the Crypto assets encouraged by Fiat generally conform to the concept of 'safety' and / or will meet the definition of 'derivative' in many jurisdictions. CSA would not expect to allow other types of stationary proteins, such as algorithmic stabilization of proteins.

Even so, CSA can clearly state the event of force majeure by written notice. The notice reads: "it is accepted that VRCA may be […] As an entrance to CTP to store assets, to buy and sell other cryptographic assets, to store the value of cryptographic assets during periods of change in the cryptographic asset market, or to prevent the conversion of its cryptographic assets into currency or […] As a method of payment.

Coinsquare, a Canadian-registered CTP, lists dollar coins (USDC) and token (DAI) stable coins on 40 products at the time of writing.

CSA is the umbrella body of Canada's provincial and ministerial regulators. The notice of February 22nd is supposed to be the second upgrade of a document that was launched in August.

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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