The Canadian Securities Administrators (CSA) have issued a call for comment on proposed regulations for funds that invest in crypto.
CSA Notice and Request for Comment – Proposed Amendments to National Instrument 81-102 Investment Funds Pertaining to Crypto Assets is available on all of the CSA members’ websites.
In Canada, there is no federal financial services regulation. Everything is governed at the provincial level. This can cause some discrepancies between jurisdictions.
The CSA says the proposed changes are “seeking to better protect investors and reduce risk.”
The proposal addresses:
- Criteria regarding the types of crypto assets that Public Crypto Asset Funds are permitted to purchase, use or hold;
- Restrictions on investing in crypto assets by Public Crypto Asset Funds or other types of reporting issuer investment funds; and
- Requirements concerning custody of crypto assets held on behalf of a Public Crypto Asset Fund.
Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission, commented on the proposal stating they recognize there is a need to address the unique aspects and risks of crypto.
“Formalizing these fundamental requirements will provide fund managers with greater clarity while we continue to assess whether a more comprehensive regime is required.”
Interested parties may submit comments on or before April 17, 2024.