Securities regulators in Canada are suggesting new rules to bring more clarity and reduce risks for public investment funds involved in crypto assets.
The proposed changes aim to limit the actions that public investment funds can take with cryptocurrencies and establish specific standards for holding these digital assets.
Proposed Crypto Regulations for Canadian Investment Funds
Canada’s securities regulators are proposing rules that limit direct crypto asset trading or holding to alternative investment funds and non-redeemable investment funds. Other mutual funds seeking crypto exposure would need to invest in these designated funds.
Assets must be on a recognized Canadian exchange, fungible, insured, and stored in cold wallets, with an annual review. This is part of an ongoing initiative by the Canadian Securities Administrators for a comprehensive crypto regulatory framework.
Proposed amendments will be open for public comment for 90 days, leading to a consultation paper and consideration of a broader crypto asset regulatory framework. Despite these rules, Canada has had spot Bitcoin exchange-traded funds since 2021.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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