Canadian Securities Regulatory Commission (CSA) issues new rules, crypto exchanges will be subject to securities laws

According to the latest regulatory guidelines issued by the Canadian Securities Regulatory Commission (CSA), Canadian crypto exchanges will be subject to national securities laws. CSA states that such laws will also apply to platforms that “facilitate the sale and purchase of crypto assets” because “the user ’s right to a contract to buy and sell crypto assets” may itself constitute a derivative. The guidance states that exchanges that maintain control over client funds must comply with such laws, even if they may not necessarily trade assets that could be considered securities or derivatives. Adam Goldman, founder of the Canadian cryptocurrency exchange Bitbuy, stated that "a clear regulatory environment will promote the development of the Canadian cryptocurrency industry, provide a clear path for the legal participation of cryptocurrencies in the financial system, and also protect Canadians' rights."