Guidelines to be issued by CSA on when c Montreal
Guidelines to be issued by CSA on when crypto traders may be outside securities laws.
The Securities regulators in Canada have recently released a clarification on when a cryptocurrency trade may fall outside of the securities laws. Crypto trading is a relatively new asset class, and the Securities agencies understand how rules will apply to them. The Canadian Securities Administrators said in a statement that in some cases the crypto assets are securities and they will fall under such laws. However, there are some other cases where they cannot be considered as securities as argued by some of the crypto-trading platforms. In recent years, many cryptocurrencies and tokens have been issued as a way of raising funds which made them look more like securities. The way some crypto-trading platforms work have added to the confusion. The administrators said that if the crypto asset is not a security and has been delivered to the user immediately after a trade, then it can be considered outside the bounds of securities law.