Crypto-asset trading guidance released by securities regulators

The guidance tries to help crypto-asset traders know whether securities law applies to a transaction

Crypto-asset trading guidance released by securities regulators

Canadian securities regulators have issued guidance to help crypto-asset traders determine when securities legislation applies to a transaction and when it does not.

According to a news release dated Jan. 16, CSA, the umbrella organization of provincial and territorial securities regulators in Canada, has published Staff Notice 21-327 — Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets.

The guidance elucidates certain ambiguous issues arising in securities matters in relation to crypto assets. It clarifies the applicability of securities laws to transactions involving crypto assets which are not, in and of themselves, securities or derivatives. It addresses the question of whether there is an obligation to make immediate delivery of a crypto asset. The guidance also gives examples of situations where securities legislation will apply and where it will not.

“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, chairman and president of CSA and CEO of the Autorité des marchés financiers, adding that CSA would continue reviewing the responses and comments received during consultation.

CSA said that it expects to publish, within the year, “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.”

Staff Notice 21-327 has been uploaded to the websites of Canadian securities regulators:

Recent articles & video

White & Case adds white collar lawyer Joel Cohen in New York

New programs hamstringing ability to meet increasing demand for home caregivers: immigration lawyer

Best in Law 2022

King & Spalding adds two new partners to product liability and mass tort team in New York

Use of non-disclosure agreements to silence victims and whistleblowers up for debate at CBA meeting

John Murphy of Borden Ladner Gervais LLP on trends at Canada’s largest law firm

Most Read Articles

Fireworks expected at debate on Alberta regulator’s mandatory Indigenous cultural competency course

Waiving visa eligibility requirements risks undermining confidence in immigration system: lawyers

Building your profile is key to performance reviews and bonus time, says Leila Rafi of McMillan LLP

How ChatGPT will affect the law