The Canadian Securities Administrators (CSA) has published a list of crypto asset trading platforms which have filed an enhanced pre-registration undertaking (PRU) with their principal regulator. They say PRUs contain important investor protection commitments from unregistered crypto platforms that are generally consistent with the requirements currently applicable to registered platforms.
“Certain unregistered crypto asset trading platforms have filed an enhanced PRU with their principal regulator to continue operations while their applications for registration and related relief are reviewed. Regulators have completed a review of some of the filings and are currently reviewing the remainder of the filings received,” the CSA states. “Filing a PRU does not mean a platform will be granted registration.”
The filings follow the December publication of a notice requiring the PRUs from crypto trading platforms, which gave the firms 30 days to comply. The undertakings include discussions about the custody and segregation of crypto assets held on behalf of Canadian clients and a prohibition on offering margin, credit or other forms of leverage to any Canadian client.
“If a crypto asset trading platform is unable or unwilling to provide an enhanced pre-registration undertaking, the CSA expects it will take appropriate action to off-board existing Canadian users and impose restrictions to prevent Canadian users from accessing its products or services,” they add. The list of reviewed PRUs currently includes those from 11 different firms.
