Canada Proposes Sweeping Amendments to Crypto Investment Rules for Public Funds

Canada is poised to overhaul its approach to cryptocurrency investments with proposed amendments by the Canadian Securities Administrators (CSA). The changes focus on tightening regulations around how public investment funds interact with cryptocurrencies. The amendments distinguish between alternative investment funds and non-redeemable investment funds as the only entities allowed to directly handle crypto assets. Other mutual funds can participate by investing in these specific funds. The proposal also imposes stringent criteria for crypto investments, requiring assets to be listed on recognized exchanges, fungible, insured, and stored in cold wallets. This move reflects Canada’s commitment to creating a comprehensive regulatory framework for crypto assets amid a surge in investment scams in the country. The proposed changes are open for public comments for 90 days, emphasizing a democratic process to include input from various stakeholders. Canada’s proactive stance positions it as a leader in responsible cryptocurrency integration into the mainstream financial system. (Source: Cryptopolitan)