Canadian Securities Authority CSA, which was legalized last week cryptocurrency issued a directive today after the regulation. Institutions, exchanges, and other crypto service startups “advanced investor protection” gave a warning about it.
Along with the directive, some rules were also set for crypto companies that want to operate in the country. Authorities announced that existing crypto platforms in Canada are subject to a pre-registration process.
CSAemphasized that crypto exchanges must pre-register for commitment within 30 days. Exchanges participating in the pre-registration process will provide collateral by separating the assets of their Canadian customers.
Crypto Leverage Banned In Canada!
It is now illegal for exchanges serving in Canada to offer leverage to customers, following crypto regulation that became law in the country last week. The CSA also underlined that the sale of stablecoins without their permission is also prohibited.
CSA President Stan Magidson talked about industry risks in his statement after the directive.
“Last year we have seen major crypto trading platforms go bankrupt. Our citizens will face great risk, especially if they use exchanges outside the country.”
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