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:

Related stories

Free newsletter

The Canadian Legal Newswire is a FREE newsletter that keeps you up to date on news and analysis about the Canadian legal scene. A separate InHouse Edition is delivered on a regular basis, providing targeted news and information of interest to in-house counsel.

Please enter your email address below to subscribe.

Recent articles & video

Excessive speeding, even momentarily, can be departure from reasonable standard of care: SCC

How does the COVID-19 criminal trials shutdown affect Charter rights of those awaiting trial?

COVID-19 layoffs, government benefits pose novel questions for employment lawyers

Legal Report: litigation ‘Green Rush’

B.C.’s Civil Resolution Tribunal keeps ‘doors open’ during pandemic

COVID-19 and the courts: March 27 update

Most Read Articles

COVID-19 and Ontario’s courts

COVID-19: law firms going remote, some restricting access to offices

How COVID-19 is forcing Canadian law schools to transition to online learning

‘No one knows what tomorrow will bring:’ Urgent matters for kids, families persist as pandemic rages