A major Canadian regulator has published a guidance report explaining its stance on crypto trading, futures, and other investment funds of the industry.
A Canadian regulator has recently provided more clarity on aspects of crypto trading and investments in the country. It has published a detailed guidance report for the law requirements for the sector. The Canadian Securities Administrators (CSA), the main regulatory authority in this regard, has prepared the report.
The report stated several crypto investment funds in Canada invested in crypto assets. It also voiced its support for the crypto futures market. It claimed Bitcoin and ETH were the best markets for trading and for public crypto asset funds. The regulator also warned against illiquid assets that could be a hindrance while selling off.
“As of April 30, 2023, there are 22 Public Crypto Asset Funds in Canada that collectively have approximately $2.86 billion in net assets. The Public Crypto Asset Funds currently invest only in Bitcoin and/or Ether and achieve this primarily through direct holdings of those crypto assets,” said the report.
The notice also touched upon regulations for these assets while it laid out certain minimum requirements for fund managers. It included cold wallet storage, visibility on the blockchain, insurance, audit reports, and liquidity.
Canadian lawmakers had released a report regarding recommendations for the crypto industry just a month earlier. The report has gained prominence in the country, with the crypto industry taking note of the many suggestions.