Regulators launch consultation on regulation of crypto-asset trading platforms

By The IJ Staff | March 14 2019 01:30PM

Photo: Freepik

The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have jointly published Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms.

The consultation paper seeks input from the fintech community, market participants, investors and other stakeholders on how regulatory requirements may be tailored for crypto-asset trading platforms operating in Canada.

Greater market integrity

“This consultation outlines a proposed regulatory framework that provides clarity for platforms, greater market integrity and protection for investors,” stated Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers in a March 14 announcement. “Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.”

A growing area of interest

“The emergence of digital and crypto assets continues to be a growing area of interest for regulators, investors and marketplaces – and, together, securities regulators are taking steps to deepen our understanding of this area,” added Andrew J. Kriegler, President and CEO, IIROC. “We must adapt to innovation, and provide clarity to the market about how regulatory requirements might best be tailored and applied to these unique business models, while maintaining investor protection.”

The regulators are seeking input on a number of areas to help determine appropriate requirements for platforms. These include: how to address custody and verification of assets, price determination, market surveillance, systems and business continuity planning, conflicts of interest, crypto-asset insurance, and clearing and settlement.

The consultation paper is available on IIROC’s site here, and on the websites of CSA members. Comments should be submitted by May 15, 2019.

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