Canada Urges Alert: No Crypto Exchange guarantees Safety

The Canadian Securities Administrators (CSA) published a warning note to investors that called for caution when trading on cryptocurrency exchanges
11 June 2018   1264

Although online exchanges declaring to be registered or verified, the CSA explained that none of them were accepted officially in Canada. The CSA is the governmental structure on regulating securities in Canada. Its jurisdiction is spread over 10 provinces and 3 areas and is responsible for developing a proper framework for securities trading and investor protection. The CSA-published warning urged the Canadian residents to be careful when dealing with cryptocurrency trading platforms, because no operator has the requisite permission to formally conduct trading operations in the country.

We want investors to understand that just because a platform may advertise itself as an exchange, that does not mean the platform is complying with applicable securities regulations.
Louis Morisset
Chair, CSA

Any investor with a cryptocurrency exchange account can not be defended according to Canadian securities and investor laws. In the unforeseen scenario that a firm gets shut down, loses its users’ funds, or is attacked, an investor can lose the entire balance they kept with the entity with little recourse available from the CSA or otherwise. 

The law informs that any such exchange seeking registration to process as a crypto exchange to service Canadian investors have to ensure “secure handling of client funds, appropriate safekeeping and protection of assets, confidentiality safeguards for personal information, reliable processes for pricing and trading in crypto assets, appropriate investor pre-trade disclosures and measures against market manipulation and other harmful practices.”

The note resembles CSA-published letter in August 2017, that alerted investors about the cryptocurrency prices that could differ from region to region giving rise to arbitrage possibilities. The high arbitrage, however, was estimated by authorities as harmful for retail investors.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   333

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.


Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.