On February 22, 2023, the Canadian Securities Administrators published CSA Staff Notice 21-332 Crypto Asset Trading Platforms: Pre-Registration Undertakings – Changes to Enhance Canadian Investor Protection (the Platform Notice). The Platform Notice impacts crypto asset trading platforms operating in Canada that are seeking registration, all of whom are required to file a pre-registration undertaking. These undertakings already include obligations that the platforms will operate in a certain manner as they seek registration, and the Platform Notice introduces new commitments the CSA will expect to see. These new commitments include those relating to the custody and segregation of crypto assets and preclude the platform from offering margin, credit or other forms of leverage to clients, enhanced financial reporting to the CSA, and prior approval from the CSA before buying or depositing certain assets (such as stable coins).

Unregistered platforms operating in Canada while pursuing applications for registration must provide a revised undertaking based on the template set out by CSA staff within 30 days of the publication of the Platform Notice and implement any system changes needed within the timeframes set out in the undertaking.

February 28, 2023