Canadian Securities Administrators (CSA) will focus on studying and regulating distributed registry technology (DLT), including the blockchain.
The CSA has included a section on DLT and cryptoactive assets in its development plan for 2019-2022. Among a number of priorities, such as ensuring the operation of fair and efficient markets, improving regulation and reducing risks, the need to take into account the consequences of implementing DLT is indicated.
The agency substantiated its interest in the DLT with the potential of technology to change the work of the financial industry. The CSA will explore possible changes to adapt the existing regulatory framework in order to solve problems that may arise with respect to cryptoactive assets. The document specifies:
“The strategic goal is to (i) identify regulatory issues related to technology that require regulatory certainty, and (ii) develop an individual and effective regulatory response to the identified significant problems.”
In addition, CSA is going to consider custodial requirements for cryptoactive assets, as well as raising capital issues that may be unique to blockchain-based securities.
Last week, it was reported that due to the tightening of the anti-money laundering policy, Canadian cryptocurrency exchanges will be required to register with the Canada Financial Analysis and Reporting Center (FinTRAC).