The Canadian Securities Administrators (CSA) has issued a warning on trading crypto assets as they may not be suitable for some investors, “in particular retail investors.” The CSA noted that crypto tends to be a highly volatile asset.
The CSA also cautioned that there are unregistered crypto asset trading platforms accessible by Canadians where safeguards that protect investors may not be in place.
In Canada, crypto markets that offer services to Canadians are required to comply with securities laws and register with authorities. Still, the CSA states this does not eliminate all risks associated with crypto trading platforms.
The warning arrives following the collapse of FTX and collateral damage as multiple crypto platforms have encountered problems with redemptions and many firms have revealed exposure to the FTX debacle.
The CSA is the council of securities regulators of Canada’s provinces and territories.