Registered crypto asset trading platforms

The following crypto asset trading platforms have received exemptive relief to offer crypto products to investors in Ontario

Registered crypto asset trading platforms are subject to terms and conditions, which can be viewed in the individual exemptive relief decisions linked in the chart above.

As explained in CSA Staff Notice 21-332 Crypto Asset Trading Platforms: Pre-Registration Undertakings - Changes to Enhance Canadian Investor Protection, the Canadian Securities Administrators (CSA) expect unregistered CTPs that satisfy eligibility criteria to provide a pre-registration undertaking to their Principal Regulator while their applications for registration and related relief are reviewed. By giving these undertakings, unregistered CTPs agree to comply with provisions that address investor protection concerns and are consistent with requirements currently applicable to registered CTPs. These commitments are generally consistent with requirements currently applicable to registered CTPs and are intended to address investor protection and level-playing-field concerns, as explained below.

The following crypto asset trading platforms have entered into a pre-registration undertaking with their principal regulator to continue operations while their application for registration is reviewed.

On March 29, 2021, the OSC communicated  to crypto asset trading platforms that they must contact Staff to initiate the registration process, or face enforcement action.

The OSC continues to work with firms (for which it is Principal Regulator) that initiated compliance discussions with Staff to assess the appropriate path to registration in Ontario.

Unregistered platforms operating in Ontario that are non-compliant may be included on the OSC Investor Warnings and Alerts Page and subject to regulatory action, including temporary orders.

Registered and unregistered platforms are reminded that OSC staff may review their compliance with securities law requirements, including in relation to advertising and marketing. False or misleading advertising and improper marketing strategies raise concerns about the fitness of a firm and its principals for registration. For recent guidance, see Joint CSA-IIROC Staff Notice 21-330 Guidance for Crypto-Trading Platforms - Requirements relating to Advertising, Marketing and Social Media Use.

Visit the Canadian Securities Administrators’ website for a list of crypto asset trading platform decisions in other jurisdictions.

Value-Referenced Crypto Assets (VRCAs): Issuer Undertakings

Certain issuers of VRCAs have provided an undertaking to the CSA as contemplated by the CSA’s interim approach to VRCAs. These undertakings can be found below.

The CSA reminds Canadians that holding a VRCA or a crypto contract with a crypto asset trading platform (CTP) does not offer the protections generally afforded to holding regulated deposits and all crypto assets, including any VRCAs, carry risk, and are not the same as fiat currency (such as the Canadian dollar, the U.S. dollar or the Euro).

Even if the issuer of a VRCA has provided an undertaking to the CSA, it does not mean the CSA approves or endorses the VRCA, endorses its safety, or that the issuer or the VRCA is compliant with Canadian securities laws. Any CTP that makes a VRCA available to clients is responsible for complying with its know-your-product and other obligations, including verifying that the issuer is in compliance with any publicly-verifiable provisions of its undertaking to the CSA (e.g., any disclosure obligations) and that the VRCA is in compliance with any applicable terms and conditions to which the CTP is subject.

Investors should consult the list of platforms that are registered with the CSA and learn the fundamentals of crypto assets before investing. While regulatory oversight plays an important role in investor protection, these measures cannot eliminate all risks associated with trading in crypto assets.