The Canadian Securities Regulatory Authority (CSA) has extended the regulatory compliance deadline for cryptocurrency exchanges until the end of 2024. Exchanges that fail to comply risk facing sanctions at the end of the year, while licensed exchanges continue to operate in the country.
The CSA’s decision comes amid ongoing concerns about stablecoins pegged to fiat currencies. The regulator cited investor protection as a primary goal. The period, which was initially set to expire in October, gives exchanges additional time to comply with regulatory requirements or offer safer alternatives. Stablecoins, in particular, have been pegged 1:1 to traditional currencies, which has been a major concern in the past, such as the TerraUSD crash.
It has been reported that cryptocurrency exchanges will face serious sanctions if they fail to comply with the latest regulations by the end of the year. These sanctions include a ban on offering certain products to Canadian users. This has led to global exchange players Binance, KuCoin and Poloniex in particular withdrawing from the Canadian market.
Binance announced its withdrawal from Canada in May 2023, citing trading limits and restrictions on stablecoins like USDT as the reason for the decision. KuCoin and Poloniex were banned in Canada in 2022 due to sanctions imposed by the Ontario Securities Commission (OSC); both exchanges failed to comply with Canadian securities laws.
Licensed Exchanges Continue Their Operations
Despite regulatory challenges, licensed cryptocurrency exchanges continue to operate in Canada. Exchanges like Kraken, Coinbase, and Bitget maintain their presence in the Canadian market by adhering to strict regulations. The increasing pressures and strict regulations on Canada’s cryptocurrency ecosystem are being implemented to both protect investors and increase the reliability of exchanges. Regulatory pressures on stablecoins could significantly impact the use of these products.
