Canada has clarified the guidelines for stable coin trading

Canada's securities regulator CSA has clarified the terms and conditions for stablecoin trading of currencies. Crypto platforms and issuers must comply with conditions before being allowed to offer stablecoin related services. Several crypto exchanges, including Binance, pulled out of Canada earlier this year following the CSA's new stablecoin guidelines.

The Canadian Securities Administrators (CSA) has issued additional guidance for trading stablecoins on crypto exchanges in the country. The update comes months after major exchanges including Binance suspended operations in the country over regulatory developments.

Canada clarifies stablecoin trading regulations

Although the CSA previously stated in the interim framework that stablecoins, referred to as “value-referenced crypto assets”, can contain securities or derivatives, the latest update includes the recognition that the asset is an important part of trading on a crypto exchange.

The guidance includes an explanation of when crypto trading platforms and fiat-backed stablecoin issuers will offer these assets to Canadian customers. Initially, the CSA said, crypto trading platforms may be allowed to offer stablecoin deposits or purchases when the asset is pegged to a fiat currency.

Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, said issuers and issuers must adhere to transparency, particularly about their reserves and management. In the press release, these are “crucial issues” to protect investors and market integrity.

“This interim framework, which we will develop in the future, will set certain standards to help investors receive the information they need about the property they are buying, including the risks associated with them,” Magidson added.

The latest clarification is in response to comments received from Canadian crypto market participants, the CSA said. The move is the result of a push to have a framework in line with international standards and norms.

This year, Binance, OKX and Bybit announced their withdrawal from the Canadian market, citing the regulatory environment.

Binance, the world's largest crypto exchange, has released new guidelines related to stablecoins and investor restrictions. According to the exchange, the requirements have made the Canadian market “no longer rentable” for business.