Canadian securities regulators have proposed new guidelines geared toward offering higher readability and danger mitigation measures for public funding funds coping with crypto belongings. The proposed modifications to rules would prohibit what public funding funds can do concerning cryptocurrencies and set the requirements for holding of crypto belongings.
Beneath the proposed new rules, solely different funding funds and non-redeemable funding funds could be allowed to commerce or have crypto belongings in custody instantly. Different mutual funds that wish to acquire crypto publicity must spend money on these funds.
Moreover, the belongings invested in must be listed on an trade acknowledged by a Canadian securities regulatory authority and must be fungible. Belongings would additionally have to be insured and held in chilly wallets, with an annual evaluate of the custodian’s inner administration required.
The proposed amendments are a part of an ongoing undertaking by the Canadian Securities Directors (CSA) to develop a complete regulatory framework for crypto belongings in Canada. The proposals will likely be open for public remark for 90 days, adopted by the event of a session paper and consideration of a broader crypto asset regulatory framework. Canada has had spot Bitcoin exchange-traded funds (ETFs) since 2021.
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