Canadian Securities Authority (CSA) clarifies its position on stablecoin regulation。The move aims to establish a balance between investor protection and promoting innovation in Canada's cryptocurrency market, the regulator said.。

In a statement issued by the Ontario Securities Commission, the CSA said it may allow stablecoins to continue trading if their terms and conditions are met.。

Stan Magidson, Chairman of the CSA and CEO of the Alberta Securities Commission, said: "The transparency of value-referenced crypto assets in the composition and adequacy of their reserves and their governance is a key issue that must be addressed to protect Canadian investors and the integrity of our capital markets.。"

"This interim framework, which we will build upon in the future, sets out certain criteria to help ensure that investors get the information they need about the assets they purchase, including the risks associated with them."。"

Canada to regulate stablecoins

In February, the CSA mentioned that stablecoins (digital assets designed to maintain long-term value stability) may fall under the category of securities and / or derivatives.。In making the announcement, CSA acknowledged the potential utility of such assets for customers using Canadian crypto-asset trading platforms.。

In addition to this, the CSA has introduced a series of interim terms and conditions to ensure transparency and safeguard the interests of investors.。One of the measures states that issuers of stablecoins must maintain an appropriate reserve of assets with a qualified custodian, held for the benefit of crypto asset holders。

In addition, Canadian regulators require stablecoin issuers and crypto-asset trading platforms to disclose governance, operations and asset reserve information.。

Regulation of Crypto Assets in Canada

Canada maintains that crypto assets traded on crypto exchanges are classified as securities or derivatives, subject to securities laws.。If a contract or instrument traded on a cryptocurrency exchange is a derivative based on a cryptocurrency asset, the CSA requires that it be regulated as a security。In addition, securities laws also apply to initial coin offerings。

Registered crypto entities must comply with specific requirements, including risk management, information disclosure, and obligations to deal honestly, fairly, and in good faith with customers。

Recently, Canadian authorities have adopted new business conduct rules that are in line with international standards。The rules, which will take effect on September 28, 2024, aim to improve transparency, accountability and ethical practices in Canada's over-the-counter derivatives market.。