Canadians should be cautious when considering buying crypto assets through trading platforms, says the Canadian Securities Administrators (CSA).
“Even though a platform may call itself an ‘exchange,’ that does not mean it is complying with the securities regulatory regime,” warned the CSA in a June 6 statement.
Not recognized in Canada
The CSA added that currently there are no crypto-asset trading platforms recognized as an exchange or otherwise authorized to operate as a marketplace or dealer in Canada.
"We want investors to understand that just because a platform may advertise itself as an exchange, that does not mean the platform is complying with applicable securities regulations," said Louis Morisset, chair of the CSA and president and CEO of Quebec regulator, the Autorité des marchés financiers (AMF). "If it is not, investors should not expect to receive the same protections that are built into the securities regulatory framework applicable to exchanges or dealers, and should therefore be cautious."
Crypto-asset trading platforms allow investors to buy and sell crypto assets, such as bitcoin or ether, online, as well as coins or tokens that may have been sold through initial offerings.