It has been well over a month since the FTX crash has taken place. Still, the impact of the crash is felt across the globe as regulators from all over the world are on high alert following the incident.
Regulatory authorities from all over the world are concerned about the funds and investments of their investors. Therefore, they are still trying to come up with ways to deal with the situation.
After the collapse of the FTX exchange, the regulators have started taking a closer look at the crypto markets. They are keen to understand the crypto market and make necessary changes to optimize the industry.
Their ultimate goal is to ensure that the funds and investments of their investors are safe and protected. The regulators are now tightening their grip over the cryptocurrency sectors in their country.
Canadian Regulators are Tightening Regulations
Among the countries tightening their regulatory grip over the crypto sector is Canada. Canadian regulators have also become very strict towards the streamlining of the crypto industry as per their standards.
The regulators in Canada are taking the necessary measures to bring the cryptocurrency industry into control. They are now micro-managing the cryptocurrency industry to protect their local investors.
If the Canadian regulators were looking for an opportunity to tighten things over the crypto sector in the country, the FTX crash has given them that opportunity.
Now the situation is in the hands of the Canadian regulators and they are doing whatever they can to save their investors from the contagion spread by the FTX crash.
The CSA Issued an Update for Crypto Industry
On December 13, the Canadian Securities Administrators (CSA), the securities regulator from Canada issued an update for the cryptocurrency industry.
The update is for the cryptocurrency trading and exchange platforms operating in the country. The CSA has announced updates on cryptocurrency trading activities in the country.
The regulator has made it clear that they are doing whatever is necessary to increase their supervision over the cryptocurrency industry.
They want to have more control and awareness of the cryptocurrency industry so they know exactly what is happening in their country’s crypto industry.
Going forward, they will be putting restrictions on crypto operations they consider to be too risky and inefficient for investors.
They will also work on increasing the requirements they already have in place for the cryptocurrency industry.
Compliance is Mandatory
The CSA has made it crystal clear that every cryptocurrency trading firm and other crypto-related entity will need to fully comply with the new terms.
Whether it is a cryptocurrency platform based inside or outside of Canada, if it is interacting with local Canadian investors, it must comply with the new terms.
If they do not, then the regulatory authorities will take necessary actions against the entities. The firms will have to fully comply with the expanded terms that they are going to introduce within the crypto industry.
Leverage and Margin Trading Banned in Canada
The regulatory authority went on to announce that with immediate effect, the leverage and margin trading services for cryptocurrencies are to cease in Canada.
None of the clients based in Canada are to be offered leverage or margin trading services by any local or foreign crypto trading firm.
Segregation of Assets
In addition to banning the mentioned trading options, the CSA has also issued an order for the segregation of funds.
The regulator has announced that the crypto firms need to ensure that they do not mix the assets belonging to the Canadian clients with their own.
They have to keep the assets of the Canadian clients segregated from their own proprietary business and assets.
The CSA has also made it clear that none of the crypto firms in Canada will be allowed to operate in Canada unless they are regulated.
Whether they are local or international, they must acquire a license from the local financial authorities in Canada before they can start operating.
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