Pragmatic Approach To Regulating Crypto Asset Trading Platforms – Commodities/Derivatives/Stock Exchanges

Recent developments in the U.S. crypto asset industry, such as
the recent FTX scandal, SEC filings against Binance and Coinbase,
and the recent Ripple Labs ruling, have shed a light on
the absence of regulation targeting trades of crypto assets in the
U.S.

In contrast, despite not taking a firm position as to whether
certain crypto assets constitute securities or derivatives,
Canadian securities regulators have established a framework that
has enabled crypto asset trading platforms to offer crypto assets
to the public and investment fund managers to offer public crypto
asset investment funds to Canadian investors.

We’ve prepared an guide of the framework developed by
Canadian securities regulators, in which we explore the following
topics:

• The Canadian approach to the determination of whether a given
  crypto asset constitutes a security or a derivative;




• Highlights of Canadian securities regulators’ guidance
  regarding stable coins;




• The obligation for crypto asset trading platforms to register
  as dealers in Canada;




• Recent U.S. case-law and whether it could result in a legal
  challenge to the Canadian framework;




• The requirements crypto asset trading platforms must fulfill to
  obtain registration as dealers;




• The Ontario Securities Commission’s recent report outlining
  deficiencies among crypto asset trading platforms; and




• The roadmap prepared by the CSA for investment funds that wish
  to invest in crypto assets other than Bitcoin and Ether.

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