Ontario Securities Commission announces new requirements for crypto asset trading

 

The Ontario Securities Commission (OSC) has announced crypto asset trading platforms must bring their operations into compliance with Ontario securities law.

As of April 19, crypto asset trading platforms that currently offer trading in derivatives or securities to persons or companies located in Ontario--this includes companies not based in Ontario that allow Ontarians access--must contact OSC staff to establish a plan for how they will bring their operations as a dealer or marketplace into compliance.

“Unregistered crypto asset trading platforms expose Ontario investors to significant risks, including potential loss, theft and misuse of their assets. The recent explosion of unregistered platforms has magnified these risks,” Grant Vingoe, chair and CEO of the OSC, said in a news release.

“Regulatory oversight serves a critical role in investor protection, and we expect platforms to act swiftly to bring themselves into compliance with Ontario securities law," he continued.

Recently, the OSC has seen a spike in the number of platforms currently offering crypto assets or crypto contracts to persons or companies located in Ontario, which is largely attributed to an increase in investor interest in crypto trading platforms.

The OSC's new requirements align with the regulatory framework issued by the Canadian Securities Administrators, which require platforms currently facilitating trading in security tokens or instruments to register as an investment dealer and become a member of the Investment Industry Regulatory Organization of Canada.