On March 11, 2021, the Canadian Securities Administrators (CSA) published guidance to improve the quality of disclosure for crypto asset reporting issuers to help investors make informed investment decisions. We have previously reported on CSA guidance on the application of securities legislation to entities facilitating the trading of crypto assets.
The notice outlines the disclosure expectations of CSA staff in key areas such as safeguarding crypto assets, the use of crypto asset trading platforms, risk factors, material changes and promotional activities. The notice also provides guidance to crypto asset issuers on navigating certain complex accounting and disclosure issues.
The CSA has indicated that it will consider the need for further guidance or policy changes specific to crypto asset reporting issuers. AUM Law will monitor these developments and keep you informed as to any changes to these disclosure expectations.
April 30, 2021