The Canadian financial regulator, the Canadian Securities Administrators (CSA), have outlined that its project towards targeting amendments that reflect priority issues regarding investing in crypto assets.
“We are proposing to amend the definition of “alternative mutual fund” to also include a mutual fund that invests in crypto assets,” was one of the changes brought forth.
Canadian Regulator Tightens Grip on Crypto
According to a recent statement, the CSA is intending to add a new section to its guidelines. This will advise investment funds that they can only invest in crypto tokens that are readily accessible to the broader general public.
We are proposing to add section 3.3.01 which will provide guidance clarifying that the proposed requirement that funds only invest in crypto assets that are either listed for trading, or are the underlying interest in specified derivatives that are listed for trading, on a “recognized exchange” is not intended to restrict funds to only acquire crypto assets through a recognized exchange.”
Typically, within the crypto community, acquiring a crypto token before its listing on an exchange can be potentially advantegous.
However, it often involving more intricate processes such as connecting wallets and exposing oneself to heightened risks. Meanwhile, it holds the potential for profit upon the token’s exchange debut.
Meanwhile, the popular memecoin SHIBA experienced substantial growth in August-September 2021, coinciding with its listing on major exchanges like Coinbase and Binance.
During that period, the price of one million SHIB tokens witnessed a significant increase.
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Author: Ciaran Lyons
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