MONTREAL, – The Canadian Securities Administrators (CSA) today published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets, to help these entities to determine situations where securities legislation may or may not apply.
“The evolving landscape of the industry prompts us to clarify our regulatory framework so as to better support fintech businesses seeking to offer innovative products, services and applications in Canada,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “As we continue to consider the comments and responses to the consultation we launched last year, the staff notice published today will help platform operators to determine whether their activities are subject to securities legislation.”
The notice describes situations where securities legislation will and will not apply. For example, securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.
The relevant determination will depend on the facts and circumstances, including the obligations and intention to provide immediate delivery of the crypto asset. The notice provides guidance on what constitutes immediate delivery, together with a detailed example of a situation where securities legislation does not apply.
The CSA and the Investment Industry Regulatory Organization of Canada (IIROC) continue to review the comments and responses to Joint CSA/IIROC Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms. We anticipate publishing a summary of comments and responses along with guidance on the regulatory framework applicable to crypto-asset trading platforms that are subject to securities legislation later this year.
CSA Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets is available on jurisdictions’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.
For more information:
| Kristen Rose Ontario Securities Commission 416-593-2336 |
Hilary McMeekin Alberta Securities Commission 403-592-8186 |
| Brian Kladko British Columbia Securities Commission 604-899-6713 |
Sylvain Théberge Autorité des marchés financiers 514-940-2176 |
| Jason (Jay) Booth Manitoba Securities Commission 204-945-1660 |
Sara Wilson Financial and Consumer Services Commission, New Brunswick 506-643-7045 |
| Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160 |
Steve Dowling Government of Prince Edward Island, Superintendent of Securities 902-368-4550 |
| David Harrison Nova Scotia Securities Commission 902-424-8586 |
Jeff Mason Nunavut Securities Office 867-975-6591 |
| Renée Dyer Office of the Superintendent of Securities Newfoundland and Labrador 709-729-4909 |
Tom Hall Office of the Superintendent of Securities Northwest Territories 867-767-9305 |
| Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466 |
SOURCE Autorité des marchés financiers
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