As per a February rule change, all crypto exchanges operating in Canada are required to sign such an undertaking.
Gemini, a cryptocurrency exchange, has reported that it submitted a pre-registration undertaking to the Ontario Securities Commission. The commission is responsible for overseeing capital markets in Ontario, Canada’s most populous province. According to regulations in Canada, all cryptocurrency exchanges must fulfil the undertaking in order to qualify as a restricted dealer and conduct business in the country. Cynthia Del Pozo Garcia, Gemini’s strategy and corporate development director, wrote:
Canada has been a crucial component of Gemini’s international expansion since it is one of the most significant and advanced markets in the Americas.
Del Pozo Garcia stated that Gemini holds multiple licenses worldwide, including state money transmitter licenses, an E-Money License issued by the Financial Conduct Authority in the United Kingdom, and an E-Money License granted by the Central Bank of Ireland. According to the director, Gemini is required to undergo yearly audits of its financial statements and is also subject to bank examinations conducted by the New York Department of Financial Services due to its licenses.
The Canadian Securities Administrators (CSA) has recently published a notice stating that all crypto asset trading platforms must sign a legally binding pre-registration undertaking to continue operating in the country. This notice was published on Feb. 22. According to the CSA, exchanges will be restricted from enabling Canadian clients to purchase or deposit stablecoins without obtaining prior approval. The notice stated, in part:
We are incorporating vital new investor protection provisions into the standard form of PRU “in light of recent insolvencies involving a number of CTPs, including Voyager Digital, Celsius Network, the FTX group of companies, BlockFi and Genesis Global (collectively recent CTP insolvency events)”.
According to recent reports, OKX, a cryptocurrency exchange, announced plans to discontinue its operations in Canada by June 2023, following the implementation of new regulations. Decentralized Exchange dYdX Has Announced The “Shutting Down” Of Its Services In Canada due to regulatory uncertainty. According to Binance and Kraken, they have completed the pre-registration process necessary to continue their operations in the country.
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