TechFlow reported, according to Cointelegraph, that the Canadian Securities Administrators (CSA) has proposed amendments to regulations regarding public investment funds' handling of crypto assets. The revisions would restrict public investment funds' activities in the crypto space and establish custody standards.
Under the proposed changes, only alternative investment funds and non-redeemable investment funds would be allowed to directly buy, sell, or hold crypto assets. Other mutual funds could gain exposure to cryptocurrencies only through these funds. Assets held must be listed on exchanges recognized by Canadian securities regulators, must be fungible, and must be insured and stored in cold wallets. Custodians’ internal controls will need to undergo annual review by public accountants.
The proposal will be open for comments over a 90-day period, after which a consultation paper will be drafted to consider a broader regulatory framework for crypto assets.
