Crypto Trading Platforms: Canada Tightens Regulations

Canada breathed a sigh of relief when its regulatory body, The Canadian Securities Administrators (CSA), prevented FTX from entering its country in June 2022. It’s unclear what issues the FTX collapse would have caused had it been allowed to operate. Still, its demise is ushering in new protections for Canadian investors and crypto trading platforms operating inside its borders.

In December 2022, Canada increased regulations and took other preventative measures to protect cryptocurrency investors and platforms in response to the FTX bankruptcy.

These new rules apply to all local and foreign crypto trading platforms operating inside Canada. Some of the updated regulations require crypto exchange services providers to segregate custody assets from the platform’s proprietary business, and they ban crypto leverage and margin trading.

The CSA) warned that these regulations are only protection measures and that crypto assets and related financial products are high-risk investments that investors should consider using platforms registered with CSA members.

Kelly Massad, CEO of Mainstay Digital, is pleased with Canada’s response.

Kelly’s Thoughts

“I think that a lot of people are gonna be pleased with the fact that Canada has just prohibited cryptocurrency platforms from engaging in margin and leverage trading. This entire industry has needed that for quite some time now, and I think that it will encourage players that are a little bit more responsible to engage in trading cryptocurrencies now that one country has prohibited them from, doing so. Anytime that you get a situation where you can leverage trade 10 to a hundred x of your money on an exchange that’s pretty much a good indication of a bubble occurring.

I think that this comes at a very welcome time for some of the folks that were hit hard by the FTX fiasco. And I think that it will encourage more institutions to get involved from here on out. Now in regard to the segregation of assets on crypto as it pertains to exchange platforms, I think that is also a good thing that has been needing to occur.

These exchanges have been engaging in fractional reserve banking and as we have come to find out, that doesn’t even work with the government on your side. The fact that they’re nipping it in the bud right now is, I think, is welcome for a lot of people in the cryptocurrency space.

And whether that’s a slippery slope to continue on after this knock this out, that’s yet to be seen. But we should find out pretty soon. I for once am glad that the government is stepping up and, issuing some guidance around this. Not all bad, but we’ll see what happens.”

Follow us on social media for the latest updates in B2B!



gpu deployment
Applied Digital is Scaling Up Infrastructure to Handle Growing GPU Deployment Needs
May 20, 2024

During a transformative period, Applied Digital experienced a significant increase in demand for large-scale GPU deployment. This demand required a focus on power density, as the networking within data centers, particularly for InfiniBand, necessitated that servers be located close together. Each server consumed 10.2 kilowatts of power, and the optimal performance was achieved when…

Read More
power sources
Applied Digital is Revolutionizing High Performance Computing by Locating Facilities at Unique Power Sources
May 20, 2024

Applied Digital optimizes high-performance computing by leveraging unique power sources, and locating facilities at the source of power rather than in traditional cloud regions. This approach is particularly suited for AI workloads, which do not require ultra-low latency like video streaming. By targeting areas with abundant but underutilized power, known as “stranded power,” the…

Read More
Experts Talk K-12 EdTech Leadership Priorities
K-12 EdTech Leadership Needs a Bigger Seat at the Table to Overcome Cybersecurity, Staffing, Professional Development Challenges
May 20, 2024

As we navigate the evolving landscape of K-12 education, the role of technology, as well as K-12 edtech leadership has never been more pivotal. Especially in the era of K-12 education post-pandemic, how has this influx of technology solutions for everything from curriculum management, to hybrid learning, to quiz gamification, to AI-supported learning, impacted…

Read More
energy reporting
Energy Reporting for Utilities & Businesses Isn’t Just for Transparency. It’s for Energy & Cost Savings, Too.
May 20, 2024

As cities and states increasingly implement energy benchmarking, disclosure, and transparency mandates, utilities and businesses find themselves navigating a complex landscape of compliance and opportunity. The rise of building performance standards, such as New York’s Local Law 97, Boston’s Building Energy Reporting and Disclosure Ordinance (BERDO), and Denver’s Energize Denver, underscores the urgency for detailed…

Read More