The Canadian Securities Administrators (CSA) has published CSA Staff Notice 81-336 Guidance on Crypto Asset Investment Funds that are Reporting Issuers (the Staff Notice), which provides guidance to help fund managers understand and comply with securities law requirements for public investment funds holding crypto assets (public crypto asset funds).
The Staff Notice provides an overview of public crypto asset funds operating in Canada and describes related oversight initiatives by CSA members. The guidance also covers:
- Market characteristics of crypto assets that could impact their viability as investments for public crypto asset funds;
- Expectations concerning custody of crypto assets held on behalf of a fund;
- Issues relating to yield-generating activities, like staking, by public crypto asset funds; and,
- Know-your-client, know-your-product, and suitability obligations with respect to public crypto asset funds.
CSA Staff Notice 81-336 Guidance on Crypto Asset Investment Funds that are Reporting Issuers 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.
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