According to sources, Canada's regulatory authority, the Canadian Securities Administrators (CSA), will soon tighten requirements for cryptocurrency exchanges operating in the country. The changes are expected to make it too expensive to do business in Canada. The decision comes after a series of failures in the crypto industry and the collapse of FTX.
Regulator Updates Pre-Registration Undertaking (PRU)
The CSA declined to discuss updates to the pre-registration undertaking (PRU) regime but stated that it would "publish additional details shortly." The SEC has already begun cracking down on crypto companies, while other G7 countries like the UK and Canada are also increasing their efforts to police the industry.
Industry Worries Over Onerous Demands
Some Canadian industry players are worried about the possibility of onerous demands from regulators in various territories. The current marketplace rules in Canada are not passport able to other jurisdictions. The update to PRU is expected to crush the Canadian crypto industry overnight as it will change the CSA's state rules and structures.
Impact on Global Exchanges
The CSA's strengthening of its oversight of crypto trading platforms will impact some of the large global exchanges operating in the country. Binance Canada, for example, has had previous issues with the Ontario Securities Commission (OSC). US-regulated crypto exchange Coinbase operates in Canada under the purview of the Autorité des marchés financiers (AMF) in Quebec but has the leeway to move to the OSC in Ontario if it makes sense for the exchange.