The Canadian Securities Administrators (CSA) recently published their 2023-2024 Year in Review (The Year in Review), which discussed the emerging cryptocurrency regulatory regime and enforcement actions the regulator undertook in crypto-related matters.
Perhaps as a sign of the times, in 2023-2024, over half of the 1,054 warnings the CSA issued to the public were directly related to crypto matters, while the regulator carried out 15 separate enforcement actions against crypto miscreants.
“Digital assets continue to grow in popularity,” CSA staff noted, “which presents a challenge requiring cooperation and collaboration with other regulators.” Against this backdrop, the regulator discussed the regulatory environment for crypto in Canada, which included working with other regulators to examine and reduce potential supervisory gaps and mitigate risks to the capital markets. During this time, the CSA:
- Published guidance to help fund managers understand and comply with securities law requirements.
- Published for comment a set of proposed regulatory requirements for investment funds; this was the second phase of a project aimed at implementing a Canadian regulatory framework for public investment funds holding crypto assets.
- Provided further regulatory clarity and guidance to crypto trading platforms (CTPs) about the CSA’s interim approach to the trading of stablecoins.
- Developed informational resources to support investors’ understanding of crypto assets and the risks they pose as an investment.
- Collaborated internationally and lent its expertise to publications that help set the tone for the development of policy recommendations for crypto and digital assets.
The 2023-2024 Year in Review is available for download from the website of the Canadian Securities Administrators.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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.
