The Canadian Securities Authority (CSA) news On February 22nd, cryptocurrency exchanges that plan to operate nationwide must undergo a pre-registration process within 30 days.

CSA Chair Stan Magidson explained the reasons behind this decision:

“Recent bankruptcies involving several cryptocurrency trading platforms highlight the tremendous risks involved in trading cryptocurrencies, especially when done on unregistered platforms based outside of Canada.”

The pre-registration process includes segregating crypto assets held on behalf of Canadian customers and suspending the provision of margin, credit, or other forms of leveraged trading to Canadian users.

Additionally, the exchange must stop offering stablecoins until written consent is obtained from the CSA.

The CSA also reminded Canadians that trading cryptocurrencies carries a “high” level of risk and may not be suitable for many investors.

By Jules

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