The Canadian Securities Administrators want to provide greater clarity on custodianship and what funds can do with crypto assets.
On Jan. 18, Canadian Securities Administrators (CSA) released proposed changes to regulations on how public investment funds treat crypto assets. The proposed amendments under consideration would restrict the activities of public investment funds regarding crypto and establish standards for custodianship.
Under the amendments, only alternative investment funds and non-redeemable investment funds would be allowed to buy, sell or hold crypto assets directly. Other mutual funds would only be able to invest in those funds to receive crypto exposure. The assets invested in would have to be listed on an exchange recognized by a securities regulatory authority in Canada and would have to be fungible.
The amendments are part of a project that was announced in July. The proposals will be open to comment for 90 days and will be followed the writing of a consultation paper and consideration of a broader crypto asset regulatory framework.
