HomeCoinsAMLT (AMLT)Canadian Securities Regulators Remind Investors About Risks of Trading Crypto Assets

Canadian Securities Regulators Remind Investors About Risks of Trading Crypto Assets

- Advertisement -


The CSA has Issued a Reminder for Investors on the Risks of Trading Crypto Assets

– The value and liquidity of crypto assets are highly volatile.

– Certain trading platforms offer their services without being registered which leaves investors open to loss, theft or misuse of their funds.

– Even when investors make use of legitimate, registered crypto businesses platforms, this regulatory oversight does not eliminate all risks associated with crypto asset trading platforms.

Requirements for Canadian crypto asset trading platforms:

  • Such platforms trading securities or derivatives must comply with Canadian securities law requirements, including being registered with securities regulators.
  • While this regulatory oversight plays an important role in investor protection, investors should know that registration cannot eliminate all risks associated with crypto asset trading platforms.

Advice to investors:

  • Collaborate as much as possible with registered investment advisors
  • Refer to CSA’s investor tools and resources available on its website “designed to help Canadians be informed investors, including information about crypto-assets”.

The CSA co-ordinates and harmonises regulation for the Canadian capital markets.

The OSFI, FCAC and CDIC Joint Statement

The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) have issued a joint statement directed at regulated entities informing them of the risks posed by crypto assets services discovered through their ongoing monitoring and their mitigation by entities.

The aim of the statement is to reinforce “the expectation that those federally regulated entities adhere to all applicable current regulatory requirements and any guidance when carrying out any crypto-related services or engaging in crypto-asset activities.”

Highlighted risks: lack of consumer protection, stability, integrity, privacy, and security of the financial system.

Responsibilities:

  • Assess the risks the entity exposes itself to when engaging in delivering any crypto-asset service and ensure proper mitigation thereof.
  • Comply with existing federal financial laws including the Bank Act, Insurance Companies Act, Trust and Loan Companies Act, and Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as well as any regulations or guidance issued by federal and provincial regulatory agencies.
  • Consult recently published papers:
  • Obliged entities planning to add crypto-assets activities in their products and services, or develop tokens must notify the FCAC and provide any information requested by the Authority.
  • Crypto-assets are not eligible for deposit insurance under the CDIC Act.
  • Clear, accurate, and accessible disclosure must be made about deposit insurance protection to consumers, as dictated by the CDIC.
  • “Under the CDIC Deposit Insurance Information By-law, each CDIC member institution is required to provide depositors with specific information about deposit protection and is expected to take reasonable and prudent steps to ensure that neither the member institution nor its business partners provide false, misleading, or deceptive information regarding deposit insurance protection or CDIC membership.”

The three Authorities state they continue their monitoring efforts of the risks crypto-assets may pose and to engage with the Department of Finance, the Bank of Canada, and other federal and provincial regulators as the crypto market evolves.

Looking to comply with crypto AML compliance stipulations?

Contact Coinfirm or sign up/log in to the AML Platform to experience the most flexible crypto RegTech platform powered by more than 350 proprietary risk analysis algorithms.



Read the original article here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 23,022.17
ethereum
Ethereum (ETH) $ 1,642.00
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 133.62
litecoin
Litecoin (LTC) $ 99.53
eos
EOS (EOS) $ 1.08
okb
OKB (OKB) $ 44.28
tezos
Tezos (XTZ) $ 1.17
leo-token
LEO Token (LEO) $ 3.38
cardano
Cardano (ADA) $ 0.390315
monero
Monero (XMR) $ 167.10
stellar
Stellar (XLM) $ 0.090316
chainlink
Chainlink (LINK) $ 7.03
huobi-token
Huobi (HT) $ 5.51
tron
TRON (TRX) $ 0.064606
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 65.09
neo
NEO (NEO) $ 8.86
iota
IOTA (MIOTA) $ 0.241722
nem
NEM (XEM) $ 0.041645
zcash
Zcash (ZEC) $ 46.20
maker
Maker (MKR) $ 728.33
paxos-standard
Pax Dollar (USDP) $ 0.994596
ethereum-classic
Ethereum Classic (ETC) $ 22.61
vechain
VeChain (VET) $ 0.024673
true-usd
TrueUSD (TUSD) $ 1.00
kucoin-shares
KuCoin (KCS) $ 8.60
waves
Waves (WAVES) $ 2.75