On August 15, 2022, the Ontario Securities Commission (OSC) the published the first pre-registration undertakings filed by crypto currency trading platforms Coinsquare Capital Markets Ltd. and Crypto.com (the platforms).

The undertakings provided by the platforms to the OSC are an important first step towards the provision of digital and crypto asset services in Canada. Other Canadian Securities Administrators (CSA) members are currently in discussions with other crypto trading platforms regarding pre-registration undertakings. Once provided, these undertakings will be published on the CSA’s website.

CSA staff expect such platforms to provide a pre-registration undertaking to their principal regulator to continue operations while their application is reviewed. By giving these undertakings, crypto trading platforms agree to comply with terms and conditions that address investor protection concerns and are consistent with requirements currently applicable to registered platforms.

The CSA advises that its members may take enforcement action if a crypto trading platform is not prepared to file an undertaking or does not abide by the terms of an undertaking.

On March 29, 2021, the CSA and the Investment Industry Regulatory Organization of Canada (IIROC) published a notice outlining securities law requirements that apply to crypto trading platforms.

All crypto trading platforms registered in Canada or that have provided a pre-registration undertaking to a CSA member, are listed on the CSA’s website.

Please see the CSA news release: https://www.securities-administrators.ca/news/canadian-securities-regulators-expect-commitments-from-crypto-trading-platforms-pursuing-registration/?

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.