Canada Sets Deadline for Crypto Platforms to Join CIRO

The Canadian regulators have laid strict guidelines that all Crypto trading platforms (CTPs) must become full members of the Canadian Investment Regulatory Organization (CIRO) before the set time. All CTPs must complete the applications as prescribed by the investment dealer standards. This requirement will assist in ensuring that there is better compliance with the laws and the protection of investors within the crypto space.

Canada Enforces Stricter Crypto Regulation Standards

The Canadian Securities Administrators (CSA) sent a notice to CTPs to remind them of the importance of meeting the prescribed timeframes, which must not be delayed. At the end of the interim period, platforms are required to show progress in their membership applications. Also, new CTPs will not be afforded a grace period during which they are required to obtain CIRO membership.

Moreover, each platform also has to enroll in the particular Canadian jurisdiction that it services. This decision guarantees the uniformity of the approach to managing crypto-assets in Canada since they are available throughout the country. Coinsquare, a Canadian crypto exchange, is an example of compliance, as it obtained its membership of CIRO after applying for it in late 2020.

Kraken, Gemini Accelerate Compliance Efforts

The CSA has gradually enhanced standards, especially after many incidents occurred within the crypto market. The most recent changes to their regulations concern primarily measures for protecting clients and the steady development of digital assets.

”The CSA’s focus ensures that all platforms are ethical and honest,” the CSA spokesperson said.

Due to these strict measures, some international crypto exchanges, such as Kraken and Gemini, have had to fast-track their compliance measures. On the other hand, some, like OKX and Binance, have decided to completely withdraw from the Canadian market. This is a general trend towards enhanced supervision of the crypto sphere, observed globally.

The CSA has stated that it will soon increase the scope of its guidelines for investment firms dealing with cryptocurrencies. This expansion will most probably encompass more stringent guidelines for the management and disclosure of crypto assets. Canada has been one of the most active countries in integrating Bitcoin into regulated financial products since the launch of spot Bitcoin ETFs in 2021.