Canada’s CSA Grants Crypto Platforms More Time to Comply with Stablecoin Rules

🚀 Stay Ahead with AltcoinDaily.co! 🌐

zzzThe Canadian Securities Administrators (CSA) have extended the deadline for cryptocurrency trading platforms to comply with regulations concerning stablecoins. This marks the second delay in the enforcement of these rules, providing crypto platforms additional time to conform to the framework.

Initially, the CSA introduced restrictions on value-referenced crypto assets (VRCAs) in February 2023, banning algorithmic stablecoins not backed by a single fiat currency by year-end. However, stablecoins backed by fiat currencies (FBCAs) were permitted to trade until the new regulations took effect, originally scheduled for April 30, 2024.

Technical Issues

Despite this deadline, crypto trading platforms cited technical issues in their efforts to meet the compliance requirements. As a result, the deadline was first extended to October 31 and now has been pushed back further to December 31, 2024.

🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

The CSA stated it remains open to alternative approaches that address its concerns around investor protection, emphasizing that all platforms must meet regulatory standards by the new deadline or cease trading in non-compliant VRCAs.

More Time, More Solutions: CSA

The CSA has been actively engaging with crypto trading platforms and industry participants to navigate these regulatory challenges. In a statement, the CSA explained that the deadline extension provides trading platforms the opportunity to either comply with existing terms and conditions or propose alternatives that safeguard investor interests.

The new regulations, once enforced, will require platforms to limit their stablecoin offerings to only those that comply with registration conditions or pre-registration undertakings (PRUs).

🦂 AltcoinDaily.co is your trusted source for the latest in crypto news and insights. 🚀

Global Platforms Exit, Others Stay Firm

Not all crypto exchanges are welcoming the stricter regulatory landscape in Canada. Since the introduction of the stablecoin rules, several overseas exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, have exited the Canadian market between March and May 2023. The exodus was largely driven by the uncertainty and perceived difficulty of adapting to Canada’s evolving regulatory framework.

On the other hand, some platforms, like Kraken, have opted to stay and comply with the new rules. Kraken’s Canadian managing director, Mark Greenberg, praised the regulators for their collaborative approach, emphasizing that a clear regulatory path allowed Kraken to continue investing in the country. Earlier reports suggest that Kraken was planning to halt USDT and other stablecoin trading in Canada.