The Canadian Securities Administrators (CSA), the entity that represents all of Canada’s provincial and territorial securities regulators, has posted a note on “crypto asset trading platforms” (CTPs) and the previously adopted “interim approach to value-referenced crypto assets (VRCAs).”
In common terms, a VRCA is a stablecoin. This includes digital assets tied to fiat currency (FBCAs) or any other asset. It was not immediately clear if a VRCA includes algorithmic stablecoins.
The interim terms were outlined in October 2023 (Staff Notice 21-333). The Notice shared the conditions for which the CSA would consent to registered CTPs – or those that provided a pre-registration undertaking – to continue allowing their clients to buy, deposit, or enter into crypto contracts to buy or deposit VRCAs.
The Staff Notice also included a deadline of April 30, 2024, by which CTPs will no longer allow clients to buy, deposit, or enter into crypto contracts to buy or deposit FBCAs that do not comply with the interim terms and conditions.
Due to unmentioned concerns from CTPs, the CSA has agreed to extend the deadline to October 31, 2024.
