Canadian regulators have announced new rules for unregistered crypto platforms, including a prohibition on offering margin, credit, or other forms of leverage.
The changes come in the wake of multiple bankruptcies that have taken place over the past 12 months, including FTX and Voyager Digital.
The Ontario Securities Commission has strengthened its oversight of crypto trading platforms in the country, and platforms pursuing registration will be required to provide enhanced pre-registration within 30 days of February 2022.
The new rules also include information about the custody and segregation of crypto assets held on behalf of Canadian clients and prohibit the purchase or deposit of stablecoins without written consent.
These changes are aimed at ensuring investor protection and preventing incidents like recent bankruptcies from happening again.