Canadian Crypto Exchanges Face Deadline for CIRO Membership!

Many countries are trying to legitimize crypto exchanges through scrutiny, especially within the country. For example, last few months Hong Kong approved the validity of the exchanges within its country by vetting them and therefore they had to apply. Then they approve them through vetting and red signal those that fail. Recently Canadian crypto trading platforms have also filed papers to become members within the country and a specific date was announced and that date is currently expiring. Canada's exchanges originally applied to become members of the Canadian Securities Industry's self-regulatory body, the Canadian Investment Regulatory Organization (CIRO) and the Canadian Securities Administrators, and are currently running out of time to receive their paperwork.

source

Canadian trading platforms facilitate trading of crypto asset securities, derivatives, instruments or contracts. However, Canadian exchanges were given a deadline to become members of CIRO from 2021 through a staff notice. And so exchanges were allowed an interim period during which they could act as restricted dealers while working towards obtaining mandatory CIRO membership. And that grace period is now at an end and the country's regulators are now calling for the country's exchanges to join CIRO as soon as possible and comply with its rules.

However, the country's regulators feel that this CIRO member is necessary. And that's why they quickly urged the country's exchanges to gain its membership. Even in view of the time that has passed since the notices issued three years ago to the present time, CSA members expect CTPs to carefully review and understand the requirements for investment dealer and CIRO membership. They will also be actively involved with CIRO in all applications they make. But an important point here is that exchanges which are brand new in the country will not be given a transitional period before CIRO membership. Even these exchanges have to register in separate jurisdictions in addition to obtaining CIRO membership. There are currently around 15 CTPs in the country.

Such initiatives were taken to include membership of these organizations exchanges so as to take consumer protection initiatives and provide protection to consumers. That's why exchanges in the country were notified of the pre-registration requirement two years ago and asked to apply. And at that time they took steps that would allow them to take consumer protection initiatives and as such they called binding contracts necessary. Consumers need protection, especially during bear markets when the market becomes volatile. So those organizations were asked to become members. However OKX, dYdX, Paxos, ByBit and Binance have announced their exit from the Canadian market. However, spot bitcoin exchange traded funds have been operating in the country since the last two thousand and twenty-one years.