The task of bringing crypto trading platforms into the regulated sphere is shifting to the Canadian Investment Regulatory Organization (CIRO).
In a joint release, the Canadian Securities Administrators (CSA) and the industry self-regulatory organization said crypto firms now need to focus on becoming registered as investment dealers and joining CIRO.
In 2021 the CSA, along with CIRO predecessor the Investment Industry Regulatory Organization of Canada, issued guidance to crypto platforms, which indicated these firms could continue to operate as restricted dealers (registered directly with the CSA), while ultimately working toward SRO membership.
Now, the regulators are dropping that approach, and crypto firms will be expected to become fully registered as investment dealers.
“CSA members do not intend to continue with the interim approach for time-limited restricted dealer registration for [crypto platforms],” the regulators said. They said they expect crypto firms to be actively working to join CIRO.
“CIRO is committed to ensuring an efficient and thorough process to review [crypto platforms’] applications for membership,” they said.
Earlier this year the Ontario Securities Commission indicated it was boosting the fees for firms seeking restricted dealer registration, given the added costs of registering these kinds of firms — particularly crypto firms, which may have novel business models that require more effort and expense to register than traditional firms.
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