Canadian Securities Regulators to Strengthen Crypto Oversight After FTX Collapse
The Canadian Securities Administrators (CSA) will strengthen its approach to crypto oversight following the recent events in the crypto market according to a statement on Monday.
The body, which consists of securities regulators from each of the 10 provinces and three territories in Canada, said it would be expanding its existing requirements for platforms that are currently operating in the country. In August, it had announced that it was expecting unregistered crypto companies in the country to do a pre-registration undertaking (PRU) while their application was approved.
"If a platform currently subject to securities legislation in Canada does not deliver a PRU to its principal regulator or cease operating, the CSA will consider all applicable regulatory options to bring the platform into compliance with securities law, including enforcement action," the statement said.
Regulators around the world have been looking more critically at crypto since FTX, which was the fourth largest exchange at one point, declared it was bankrupt and misused customer funds. Its former CEO Sam Bankman-Fried was arrested on Monday after the U.S. filed criminal charges.
Read more: FTX Founder Sam Bankman-Fried Arrested, Bahamas Says
Recent events - that have seen some of the biggest crypto companies and coins collapse like - crypto lender Celsius and Terra's algorithmic stablecoin terraUSD (UST) has led to billions being wiped out of the crypto market within a year.
"The CSA continues to monitor and assess the presence and role of stablecoins in Canadian capital markets," the statement said.