Canadian Regulator Embraces Crypto Futures, Boosts Price Discovery

Canadian Regulator Supports Crypto ETFs, Restricts Illiquid Assets

The Canadian Securities Administrators (CSA) has expressed trust in regulated crypto futures markets, stating they promote price discovery. The CSA issued guidance for fund managers on complying with laws for investment funds holding crypto assets. The document supports the existence of crypto ETFs in Canada, highlighting their ability to hedge against price fluctuations. Bitcoin and Ether markets are considered favorable for public crypto asset funds. The CSA restricts the proportion of illiquid assets in funds and expects managers to determine if crypto assets are securities or derivatives. Staking is allowed but subject to compliance with illiquidity restrictions. Some major crypto exchanges halted operations in Canada due to regulatory concerns.