Canada: Implementation of Pre-Registration Requirements for Crypto Asset Trading Platforms

On 24 March 2023, the Canadian Securities Administrators (CSA) implemented an order outlining investor protection commitments and registration requirements for crypto asset trading platforms (CATP). The CATPs are expected, if they wish to operate in Canada and register with the CSA, to file "pre-registration undertakings" (PRU). The order introduces additional commitments in relation to PRUs, including regarding the custody and segregation of crypto assets and the provision of financial information to the CSA. The PRUs are required for members of the CSA that are operating in Canada while applying for registration. The PRUs contain similar commitments to CATPs that are already registered. Therefore, the same requirements would be applied to CATPs even before registration. If CATPs operational in Canada do not provide the PRUs, the CSA will require the CTAPs to off-board and restrict access to Canadian users. While this order applies mostly to CATPs still seeking registration, the CSA will contact some already registered CATPs separately if any changes to the CATP's registration or requirements occur. The order was implemented after the lapse of the 30-day compliance period since its original adoption.