The new rules require service providers to clearly distinguish between complex products and services such as margin trading, leverage and credit. They should not be offered in any free form, and the client will have to be informed of the possible risks. There should also be a clear separation of customer funds from provider funds, including crypto exchanges.
The new rules prohibit offering stablecoins to users until written permission is obtained from the CSA. The changes will also affect algorithmic stablecoins.
The new guidelines are expected to come into effect within a month and all providers will be required to operate in accordance with the guidelines. Otherwise, sanctions will be applied to them, up to the prohibition of activities.
The CSA announced the imminent introduction of such measures earlier in the week, insisting that the innovations are aimed at protecting investors from risks from service providers operating in Canada. It will be possible to continue on the territory of the country, but the registration procedure will become more complicated. Work on changes to the legislation began in 2021 after a series of bankruptcies of major market players, which resulted in losses for investors.
Source: Bits
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