Canadian regulator banned the trade in algorithmic stablecoins – Bits Media

Canadian Association of Securities Administrators (CSA) I introduced new rules, according to which local traders are prohibited from buying and selling any stablecoins, not approved by the department.

The ban will be applied to all cryptocurrency exchanges and platform, on which you can trade digital assets. However, in emitters of stablecoins, tied to the value of other assets (Value Referenced Crypto Assets, Gap), There is an opportunity to get around this ban, Having received the permission of the CSA. For this, the company must comply with the requirements of the regulator, One of which is the provision of fiat currencies and monetary equivalents.

“CSA is unlikely to be ready to approve VRCA, the cost of which is not supported by the reserves of state currencies, And with the help of the algorithm ", - indicated in the document of the department.

Canadian regulator chose to enter the term VRCA, Since he considers stablecoins not so stable due to their possible crawling from fiat currencies. So, Last May, Stablecoin UST completely lost its binding to the US dollar, which led to the collapse of the Terra ecosystem.

CSA also requires, so that trading platforms allow VRCA trade only in that case, If the reserves of issuers, consisting of highly liquid assets, will be stored at a qualified castodian. Reserves should be checked monthly by independent audit companies, And their reports must be published in a timely manner.

Besides, VRCA distribution must comply with Canadian securities legislation, Since crypto acts, wealthy fiat currencies, fall under the determination of securities, said CSA.

In August last year, CSA ordered platforms for trading digital assets to comply with the requirements for the protection of investors, Even if they are in the process of obtaining a license.