Canada’s regulatory body clarifies stablecoin rules for exchangers and issuers.

The Canadian Securities Administrators (CSA) has given guidance to exchanges and cryptocurrency issuers on the temporary approach to what it calls price-reference crypto assets, with a particular focus on stablecoins.

On October 5, Canada's umbrella organization of provincial and territorial securities regulators published a clarification that allows trading of certain cryptocurrencies that reference the value of a fiat currency, subject to terms and conditions.

In February, the CSA reaffirmed its view that Canadian crypto exchanges “may constitute securities and/or derivatives” of stablecoins banned from trading.

However, if issuers maintain appropriate asset reserves with a qualified custodian and crypto exchanges offering stablecoins make “publicly available certain information related to management, operations and asset reserves,” the CSA may allow those assets to be traded.

Stan Magidson, Chair of the CSA and Chair and CEO of the Alberta Securities Commission, said in a statement:

“This interim framework, which we will build on going forward, will set certain standards to help investors receive the information they need about the assets they are buying, including the risks associated with them.”

The CSA cautions that assets that satisfy fiat-backed crypto contracts are still risky and should not be viewed as sanctioned or risk-free.

Related: Canadian crypto ownership drops amid tighter regulations, prices fall

In August, Cointelegraph reported that regulatory transparency in Canada has led to more interest in crypto from institutions.

In July, the CSA issued guidance on foreclosures but said credit opportunities were limited and the amount of “illegal” assets limited.

Stablecoin market capitalization has been declining over the last 18 months or so and currently represents 11% of the total crypto market value at $123 billion.

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