Canadian crypto exchanges face deadline for CIRO membership

Derek Andersen2 hours agoCanadian crypto exchanges face deadline for CIRO membershipCrypto traders have been on interim rules since March 2021, and it’s time to finalize membership in the securities industry"s self-regulatory organization.624 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onCrypto trading platforms (CTPs) in Canada are running out of time to get their paperwork in to become full-fledged investment dealers and members of the Canadian securities industry’s self-regulatory organization, the Canadian Investment Regulatory Organization (CIRO) and Canadian Securities Administrators (CSA) reminded their crypto colleagues in a news release.CTPs treated like their traditional colleagues

CTPs facilitate trading of crypto asset securities, derivatives, instruments or contracts. Under a staff notice released in March 2021, CTPs were allowed an interim period during which they could operate as restricted dealers while they worked on obtaining mandatory CIRO membership. Now the time is coming for CTPs to join CIRO finally and conform to its rules, the regulators say:“Given the time that has passed, CSA members expect CTPs to have carefully reviewed and understood the requirements to become investment dealers and CIRO members, and be actively engaged with CIRO on their applications.”

New CTPs will not be given an interim period before CIRO membership, they added. In addition to obtaining CIRO membership, CTPs are required to register in individual jurisdictions. There are currently 15 CTPs.

Related: Retail crypto market growth in Canada driven by market factors, regulation

Canadian crypto exchange Coinsquare became the first CTP to gain IIROC (Investment Industry Regulatory Organization of Canada — the former name of CIRO) membership. Coinsquare submitted its application for CIRO membership in November 2020 and was granted membership notification in October 2022.Canadian crypto securities regulation taking shape

The CSA began creating pre-registration requirements for CTPs in August 2022. Their first move was to require undertakings — binding agreements — on customer protections. The CSA tightened its requirements significantly in a second notice in February 2023 that reflected a new caution after the failures of crypto firms during the bear market. The second set of requirements particularly affected stablecoins.Source: CSA News

Crypto exchanges reacted differently to the new regulatory regime. Kraken and Gemini rushed to adhere to the new requirements. OKX, dYdX, Paxos, ByBit and Binance announced their departures from the Canadian market.

The CSA also issued guidance for investment firms holding crypto in July 2023 and expanded on that guidance in a proposal in January. Canada has had spot Bitcoin exchange-traded funds since 2021.

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