The Securities Regulatory Authority of Canada (CSA) - a national body made up of Canada's provincial financial market regulators - has issued a set of proposed regulatory requirements for public investment funds seeking to invest in crypto assets for comment.。

Stan Magidson, Chairman of the CSA and Chairman and CEO of the Alberta Securities Commission, said:

"We recognize that the current regulatory framework for public investment funds needs to be adjusted to address the unique aspects and risks of crypto assets.。Formalizing these basic requirements will provide clearer information to fund managers as we continue to assess the need for a more comprehensive system。"

The proposed amendment tweaks the requirements for public investment funds that invest in crypto assets to better protect investors and reduce risk.。Requirements include crypto asset investment restrictions and custodial obligations。

The proposed amendment is the second phase of Canada's project to implement a regulatory framework for public investment funds holding crypto assets.。In the third phase of the project, the Canadian Security Agency will conduct an open consultation on the broader framework.。

The comment period is 90 days and stakeholders are invited to provide written comments on or before April 17, 2024.。

CSA reminds Canadians that even investing in crypto assets through public investment funds is risky and may not be suitable for most retail investors。In general, investing in crypto assets is a form of speculation, and the value and liquidity of crypto assets are highly volatile。While regulation of public investment funds plays an important role in protecting investors, these measures cannot eliminate all the risks associated with investing in crypto assets.。

The CSA is the governing body of Canada's provincial and territorial securities regulators, coordinating and harmonizing the regulation of Canada's capital markets.。CSA's crypto rule proposal can be downloaded from the Ontario Securities Commission website。