The Canadian Securities Administrators (CSA) has warned Canadians to be careful when buying cryptocurrency assets through trading platforms.
The CSA advises although a platform may call itself an “exchange,” that does not mean it is complying with securities regulations. Currently, there are no crypto-asset trading platforms recognized by the CSA or any provincial or territorial securities regulator as an exchange or is otherwise authorized to operate as a marketplace or dealer in Canada.
Crypto-asset trading platforms are online trading facilities that allow investors to buy and sell crypto assets, including bitcoin or ether, and/or coins or tokens that may have been sold through initial coin offerings or initial token offerings. In some instances, these platforms are advertising themselves as exchanges.
It is the position of the CSA that if a platform is facilitating the trading of crypto assets or interests in crypto assets that are securities or derivatives, that platform is required to comply with securities legislation. It warns potential investors to be wary when dealing with any crypto-asset trading platform because key investor protections such as secure handling of client funds, appropriate safekeeping and protection of assets, and confidentiality safeguards for personal information, may not be in place.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
