The document outlines the financial regulator’s “minimum expectations” regarding the initial holding of digital assets in cold wallets, principles for separating users’ own funds and assets, methods for insuring against corporate crime and reporting to fund auditors.
“We encourage stakeholders to read the CSA guidance to better represent regulators’ expectations for publicly traded crypto-asset funds. It’s important for such funds to be clear about their regulatory obligations given current developments in the cryptocurrency market,” said CSA Chairman Stan Magidson
The CSA confirmed that the agency does not prohibit steaking crypto-assets, but expects fund managers to be vigilant about the potential for liquid crypto-assets to become “illiquid” in time for steaking.
The regulator expects fund administrators to determine which of the crypto investment products offered to users could be securities or derivatives. The Commission reminds investment managers of the fund’s mandatory Know Your Product (KYP) and Know Your Customer (KYC) operational compliance, and that they are prohibited from lending on assets other than securities.
Earlier the Industry and Technology Committee of the lower house of the Canadian Parliament published a research report on the development of blockchain in the country, which indicated the intention to support and develop the industry of blockchain and cryptocurrencies.<br