Canadian securities regulators have proposed new rules aimed at providing greater clarity and risk mitigation measures for public investment funds dealing with crypto assets. The proposed changes to regulations would restrict what public investment funds can do regarding cryptocurrencies and set the standards for holding of crypto assets.
Under the proposed new regulations, only alternative investment funds and non-redeemable investment funds would be allowed to trade or have crypto assets in custody directly. Other mutual funds that want to gain crypto exposure would have to invest in those funds.
Additionally, the assets invested in would have to be listed on an exchange recognized by a Canadian securities regulatory authority and would have to be fungible. Assets would also need to be insured and held in cold wallets, with an annual review of the custodian’s internal…
