The Canadian Securities Administrators (CSA) issued a warning to retail investors that trading in crypto assets is a risk that may not be suitable for many retail investors. “Generally speaking, the value and liquidity of crypto assets are highly volatile,” they write.
More, they add that unregistered crypto asset trading platforms accessible to Canadians pose a significant risk to investors.
“Crypto assets are high-risk investments. Canadians considering buying or selling crypto assets, despite all known risks, should use platforms registered with Canadian securities regulators and should avoid using platforms banned by Canadian securities regulators. Platforms that do not comply with Canadian securities laws present significant risks to customers because investors’ assets may not be adequately safeguarded,” they write. “Crypto assets, regardless of the platform you use, are a very risky investment.”
They add that the work of bringing crypto trading platforms into compliance with Canadian securities laws is ongoing. Those currently in operation are signing pre-registration undertakings in which they agree to comply with terms and conditions, applicable to all registered platforms, that address the various regulators’ investor protection concerns.