CSA extends VRCA compliance deadline to Dec 31, 2024, for Canadian crypto platforms.
No VRCA currently regulated under Canadian frameworks addressing issuer disclosures.
CSA warns trading unregulated VRCAs exposes investors to significant financial losses.
The Canadian Securities Administrators (CSA) recently released a new memorandum regarding the regulatory requirements and timelines for crypto asset trading platforms with respect to Canadian regulations. This update focuses on platforms that operate with value-referenced crypto assets (VRCAs) best known to be backed by a single fiat currency.
According to the CSA, the trading of unregulated VRCAs has led to considerable losses for investors due to market disruptions and the actions of unregistered entities within the crypto market. These financial losses underscore the CSA's ongoing concerns regarding protecting investors engaging in such trades.
https://twitter.com/CSA_News/status/1839350551118524837
The regulatory body emphasized that no VRCAs, which are subjected to payment-based or banking-based regulatory frameworks internationally, are currently regulated or acknowledged under any Canadian framework that addresses financial conditions or public disclosures by issuers.
Extended Compliance Deadlines
Given the difficulties that CTPs have reported in meeting the regulatory requirements, the CSA has extended the compliance deadline extension from the initial one of April 30, 2024, to December 31, 2024. This extension is intended to provide CTPs sufficient time to adhere to the existing terms and conditions outlined in their registration and exemptive relief decisions or propose viable alternative solutions that meet investor protection standards.
The original compliance deadline set for April focused on ceasing clients' purchase and deposit of non-compliant FBCAs. However, due to technical issues and the complex nature of implementing these regulations, the CSA saw fit to provide additional time for CTPs to adjust their operations accordingly. During this period, the CSA remains open to discussing and evaluating alternative regulatory proposals from CTPs to address the risks associated with VRCAs.
Investor Protection and Risk Awareness
The CSA continues to stress the importance of understanding the risks associated with crypto asset investments. Despite a crypto asset or VRCA complying with specific terms and conditions of registration, it does not imply CSA's endorsement of its safety or investment viability. Investors are advised to remain cautious, as holding VRCAs or engaging in contracts with CTPs does not provide the same protections as regulated financial deposits.
The post CSA Extends VRCA Compliance Deadline to December 2024 appeared first on Crypto News Land.
