Canada-based crypto trading platforms (CTPs) are facing a stringent regulatory deadline set by the Canadian Investment Regulatory Organization (CIRO). These platforms must complete their applications to attain investment dealer status.

Regulatory Reminders and Membership Requirements

The Canadian Securities Administrators (CSA) has reiterated the necessity for CTPs to adhere to CIRO membership requirements to ensure regulatory compliance and enhance customer protection.

In 2021, the CSA and CIRO allowed CTPs to operate as restricted dealers temporarily. This transitional period enabled them to offer services while working towards obtaining full CIRO membership.

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Transitional Period Ending

As the transitional period concludes, Canadian regulators have set deadlines for CTPs to transition from restricted dealers to fully authorized investment dealers. The CSA expects that:

“CTPs have carefully reviewed and understood the requirements to become investment dealers and CIRO members, and be actively engaged with CIRO on their applications.”

The CSA members have made it clear that the temporary restricted dealer registration will not be extended indefinitely.

Canada’s Crypto Market Growth

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Expansion in Crypto Services

A KPMG report indicates significant growth in Canada’s crypto market. According to the bi-annual survey:

– 50% of financial services in Canada offer at least one cryptocurrency feature.
– 52% provide crypto asset trading services.

This expansion is driven by high client demand, with 8 in 10 platforms reporting substantial interest from retail investors.

Bitcoin ETFs and Market Dynamics

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Spot Bitcoin exchange-traded funds (ETFs) have been available in Canada since 2021, providing multiple investment options. However, despite the growth, Canadian financial institutions experienced substantial outflows, losing $832 million in the first half of the year.

The regulatory landscape for crypto trading platforms in Canada is tightening, with CTPs required to comply with CIRO’s investment dealer status application deadline. This move aims to enhance regulatory alignment and customer protection in the burgeoning crypto market, which continues to grow amidst high demand from retail investors.

Source: cryptonews.com

The post Canada Sets Strict CIRO Compliance Deadline for Crypto Trading Platforms appeared first on HIPTHER Alerts.

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