Before receiving a right to operate in Canada, crypto exchanges will have to fill pre-registration undertakings.
The Canadian Securities Administration (CSA), a regulator responsible for developing a harmonized approach to securities regulation, has introduced a pre-registration undertaking for crypto companies that seek to operate in Canada.
According to the statement, after completing the undertakings, the companies will confirm their agreement with terms and conditions. These provisions include an overview of measures taken to protect investors and specific requirements, which apply to currently registered platforms.
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This undertaking is the first step for crypto exchanges to start operating while the documentation needed for registration is under review.
This pre-registration undertaking was firstly introduced on March 29, 2021. CSA, together with the Investment Industry Regulatory Organization of Canada, has issued a notice, which outlines the security requirements for crypto trading platforms.
Following the announcement, CSA added that crypto exchanges Crypto.com and Coinsquare Capital Markets Limited have already submitted their pre-registration undertakings. CSA notes that it is currently in talks with other companies to provide this documentation.
Crypto.com shared the news with its customers through a blog post on the company's website. The crypto exchange highlights that the submission of pre-registration documentation marks it as “the first global cryptocurrency platform currently operating in line with this regulatory undertaking in Canada”.
Moreover, the crypto exchange states that it is more than ready to provide its services while complying with Canadian regulations issued by CSA and Ontario Securities Commission (OSC). CEO of Crypto.com Kris Marszalek, commented by saying:
Compliance underscores everything that we do at Crypto.com. The North American market, and Canada specifically, represent a significant area of potential growth for the crypto market, and we are proud to work with the OSC and the CSA in providing Canadian customers access to a safe, secure, and reliable global platform.
The Consquare Capital also took to their blog to comment on the submission of the undertaking. The company highlights that it has paid all applicable fees, filled and completed the documentation required by CSA.
Coinsquare supports the OSC’s pre-registration undertaking approach and believes it will provide clarity to the market on regulatory expectations regardless of the stage of a platform’s registration process.
It is worth noting that even the companies who have received “restricted dealer” status have to complete pre-registration documents.