Canadian Securities Administration Set to Tighten Cryptocurrency Exchange Requirements

02/17/2023 21:21 • Blockchain Buzz • 136 views

It is reported that, according to two people familiar with the plan, the Canadian Securities Administration (CSA) will tighten the requirements for the cryptocurrency exchange operated in the country later this month. CSA announced in the middle of last year that it required unregistered cryptographic trading platforms operating in Canada to make certain compliance “commitments” when seeking registration. CSA declined to discuss the update of the pre-registration commitment (PRU) system, but said it would “publish more details in the near future”.

The Canadian Securities Administration will tighten its requirements for the country’s cryptocurrency exchange

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The Canadian Securities Administration (CSA) is set to announce tightened requirements for the country’s cryptocurrency exchange later this month. Two individuals familiar with the plan revealed that the CSA would update its pre-registration commitment system to comply with its rules and requirements. Last year, the CSA mandated that unregistered cryptographic trading platforms in Canada must adhere to certain compliance commitments when seeking registration.

The move by the CSA is not entirely surprising, as Canadian regulators have expressed concerns over the cryptocurrency market’s integrity and transparency. Some Canadian cryptocurrency exchanges have been under scrutiny for their inadequate anti-money laundering and anti-terrorist financing measures, leading to reports of fraudulent activities. The CSA’s decision to tighten up these requirements is intended to mitigate these issues and ensure the protection of investors within the country.

The CSA has not given any official statement about the planned changes to the pre-registration commitment system. However, they have confirmed that further information would be made available in the near future. The CSA’s decision to keep details of the update under wraps could mean that the move is part of a broader strategy to overhaul cryptocurrency regulations in Canada.

Canadian regulators are keen to align their approach to the cryptocurrency market with global standards. The Financial Action Task Force (FATF) recently issued updated guidance on virtual assets to its member countries, urging them to adopt measures that would combat money laundering and other financial crimes in the cryptocurrency market. Canada is a member of the FATF, and its decision to tighten requirements for cryptocurrency exchanges could be seen as a move towards complying with FATF recommendations.

In conclusion, the CSA’s decision to tighten cryptocurrency exchange requirements is a positive move that could bolster investor confidence in the industry. This move, alongside broader regulatory reforms, could encourage new participants to enter the market and promote its stability and long-term growth.

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