Canadian Securities Administrators Extend Compliance Deadline in Interim Approach to Value-Referenced Crypto Assets

On April 17, 2024, the Canadian Securities Administrators (CSA) provided an update to their interim approach in respect of “Value-Referenced Crypto Assets” (VRCAs), as set out in the CSA’s guidance in Staff Notice 21-333 – Terms and Conditions for Trading Value-Referenced Crypto Assets with Clients (“SN 21-333”). Further details concerning SN 21-333 can be found in our Updates, Canadian Securities Administrators Announce Guidance on Trading of Value-Referenced Crypto Assets for Crypto Trading Platforms and Canadian Securities Administrators Announce Enhanced Pre-Registration Undertaking Requirements for Crypto Trading Platforms.

In SN 21-333, the CSA set a deadline of April 30, 2024, after which registered crypto trading platforms (CTPs), or CTPs that provided a pre-registration undertaking, could no longer allow their clients to buy or deposit VRCAs that seek to replicate the value of a single fiat currency (FBCAs), unless such FBCAs comply with the interim terms and conditions set out in SN 21-333.

Deadline Extended

The CSA has engaged with Canadian crypto market participants and CTPs on the implementation of the interim approach set out in SN 21-333.  In response to concerns raised, including technical issues in meeting the April 30 deadline, the CSA extended the deadline to October 31, 2024. In the meantime, the CSA will continue to welcome submissions on the appropriate long-term regulation of VRCAs.

For further information on this new guidance, please contact any member of our Capital Markets Group or Technology Group.