• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
Calgary.Tech

Calgary.Tech

 
 
  • Home
  • News
  • Events
  • Interviews
  • Thought Leaders
  • Techtalent.ca
  • About Us
  • Contact Us

Alberta Securities Commission Warns Crypto Trading Has ‘Tremendous Risks’

February 23, 2023 by Knowlton Thomas Leave a Comment

Last year was an interesting one for crypto asset trading platforms in Canada.

A downturned market has spurred potential consolidation efforts while financial scandals—which grazed Alberta through Calgary’s Bitvo—have prompted the Alberta Securities Commission and Canadian Securities Administrators to warn investors that trading in crypto assets comes “with elevated levels of risk that may not be suitable for many investors, in particular retail investors.”

The CSA has noted that, generally speaking, “trading crypto assets is a speculative activity, and the value and liquidity of crypto assets are highly volatile.”

“Crypto asset trading platforms that operate in Canada and trade securities or derivatives are required to comply with Canadian securities law requirements, including registering with securities regulators. This regulatory oversight plays an important role in investor protection.”

According to the Alberta Securities Commission, recent industry events showcase the high risk level associated with trading crypto assets, even in a regulated environment.

“Recent insolvencies involving several crypto asset trading platforms highlight the tremendous risks associated with trading crypto assets,” said Stan Magidson, the Alberta Securities Commission chief executive.

Magidson says risk is further elevated “particularly when conducted on unregistered platforms based outside of Canada.”

Furthering an update in December 2022, the CSA this week published a notice describing enhanced investor protection commitments it expects from crypto asset trading platforms operating in Canada.

These commitments are made in the form of an enhanced pre-registration undertaking, which will include higher “expectations regarding the custody and segregation of crypto assets held on behalf of Canadian clients and a prohibition on offering margin, credit, or other forms of leverage to any Canadian client.”

They will also prohibit crypto asset trading platforms from permitting clients to purchase or deposit value-referenced crypto assets—commonly referred to as “stablecoins”—and proprietary tokens without the prior written consent of the CSA.

If a CTP is unable or unwilling to provide an enhanced pre-registration undertaking, it must “off-board existing Canadian users and impose restrictions to prevent Canadian users from accessing its products or services,” according to a statement from the CSA.

Canada remains a hotspot for crypto activity with many companies in the space.

.

Filed Under: News Tagged With: Alberta Securities Commission, Bitvo

About Knowlton Thomas

Knowlton Thomas is Editor-in-Chief of The Midway Advance and Senior Writer for Calgary.tech. Over more than a decade of journalism, he has penned thousands of articles and dozens of essays on technology, health, and culture across a variety of publications.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

 
 

Stay Connected

  • LinkedIn
  • RSS
  • Twitter

Community Partners

Bulletin Board

Plug and Play Alberta Expo to Showcase New Tech Solutions

Plug and Play Alberta will host its Spring 2025 … [Read More...] about Plug and Play Alberta Expo to Showcase New Tech Solutions

Energy Meets AI: Calgary Breakfast Gathers Leaders to Shape Alberta’s Digital Future

A select group of senior executives from Alberta’s … [Read More...] about Energy Meets AI: Calgary Breakfast Gathers Leaders to Shape Alberta’s Digital Future

Calgary Startups Lead Finalist Field at 2025 Alberta Cleantech Awards

Calgary’s cleantech community will be in the … [Read More...] about Calgary Startups Lead Finalist Field at 2025 Alberta Cleantech Awards

Foresight 50 Returns to Spotlight Top Cleantech Ventures in Calgary

Foresight Canada is now accepting applications for … [Read More...] about Foresight 50 Returns to Spotlight Top Cleantech Ventures in Calgary

Startup Scene Heats Up with Inventures 2025 Pre-Party at Platform

Alberta’s innovation community will get an early … [Read More...] about Startup Scene Heats Up with Inventures 2025 Pre-Party at Platform

Copyright © 2025 Incubate Ventures | Techtalent.ca · Techcouver.com · Decoder.ca · Fintech.ca · CleanEnergy.ca | Privacy