The Canadian Securities Administrators (CSA) has published its plans for the next three years, which include cryptocurrencies and blockchain technology.
In its Business Plan for 2019-2022, the CSA said that it is considering the implications of emerging technologies, such as the growing influence of social media and innovation in distributed ledger technology (DLT), including blockchain.
“As the influence of social media platforms grows, companies, dealers, advisers, intermediaries and investors have immediate, direct and widespread access to an unprecedented amount of information that was previously available only to institutions and sophisticated investors,” the CSA said. “The CSA should consider implications of activist short selling in the context of this technology. DLT has the potential to transform the landscape of the financial industry.”
The regulator said that it will gather information to analyze the implications of activist short selling and determine the nature and extent of activist short seller behavior and whether regulatory action is required.
Regarding cryptocurrencies, the CSA said that it will consider developing a tailored regulatory regime for crypto trading platforms that are subject to securities or derivatives regulation.
“There are currently no platforms facilitating the secondary trading of crypto-assets that are regulated as a marketplace in Canada,” the CSA said. “Some of these platforms, depending on how they operate and the crypto-assets they offer, may be subject to securities or derivatives regulation.”
According to the regulator, the strategic goal consists of identifying the emerging regulatory issues related to technology that require regulatory action or clarity, and developing a tailored and effective regulatory response for significant issues identified.
In addition, the CSA said that it will continue research and propose, if appropriate, custodial requirements for
registrants and investment funds that facilitate custody solutions for the trading and holding of regulated crypto-securities.
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