Canada Outlines Rules for Trading Stablecoins


The Canadian Securities Administrators (CSA) has provided clarification on the trading of stablecoins on crypto exchanges in Canada. This update follows months after major exchanges, including Binance, halted operations in the country due to regulatory developments.

The CSA noted that stablecoins, which they term as “value-referenced crypto assets,” may constitute securities or derivatives. The guidance includes conditions for crypto trading platforms and issuers of fiat-backed stablecoins to be allowed to offer these assets to Canadian customers. As per the CSA, crypto trading platforms may offer stablecoin deposits or purchases when the asset is pegged to a single fiat currency.

Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, stated that transparency is key for providers and issuers, particularly in regards to their reserves and governance. He noted that these are “critical issues” for protecting investors and market integrity.

The latest guidance from CSA is in response to comments from Canadian crypto market participants. The framework is also designed to align with global standards and regulations.

This year, several exchanges, including Binance, OKX and Bybit, have exited the Canadian market citing the regulatory environment. Binance specifically noted that the requirements had made the Canadian market “no longer tenable” for business.

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