Foreign Media: Most Canadian Crypto Exchanges May Be Subject to Securities Laws According to Latest Guidelines

The Canadian Securities Regulatory Commission (CSA) issued new guidelines on Thursday that state that many crypto exchanges in the country will be subject to national securities laws. The new guidelines follow to some extent a framework issued by the organization since March 2019, which states that "if crypto assets that are securities or derivatives are traded on a platform, the platform will be subject to securities regulations The CSA said that these laws "may also apply to platforms that facilitate the buying and selling of crypto assets, including crypto assets as commodities, because user contractual rights to crypto assets may themselves constitute a derivative." The guidance states that exchanges that maintain control over client funds must comply with such laws, even if they do not necessarily trade assets that could be considered securities or derivatives. Unmanaged exchanges, that is, exchanges that do not process or control customer funds, seem more likely to be unregulated.