Authorities in Canada are taking steps to better protect Canadian cryptocurrency investors following the FTX collapse and spreading the contagion.

Securities Administrators of Canada (CSA), Canadian provincial and territorial securities regulatory boards, published on December 13 an update for cryptocurrency trading platforms operating in the country.

CSA said the authority had strengthened its approach to overseeing cryptocurrency trading platforms by expanding existing requirements.

Per the notice, all cryptocurrency trading companies operating in Canada — local and foreign — must comply with recently expanded requirements, which prohibit them from offering margin or leverage trading services to any Canadian clients.

The expanded terms also require cryptocurrency exchange service providers in Canada to segregate custodial assets from proprietary trading platforms.

“Custodians would generally be considered eligible if regulated by a financial regulator in Canada, the US or a similar jurisdiction with a behavioral monitoring and financial regulatory regime,” CSA said in a statement.

The Council emphasizes that even with the adoption of these measures, any crypto-asset or financial product related to crypto-assets is a high-risk investment, urging investors to invest only using platforms registered with CSA members.

CSA did not immediately respond to Cointelegraph’s request for comment.

In the new statement, CSA referred to previous communications to cryptocurrency trading platforms operating in Canada, issued on August 15, 2022. The authority stated that they expect commitments from unregistered cryptocurrency trading platforms operating in Canada when they request registration with pre-enrollment commitment form.

The CSA communication came shortly after FTX signed an agreement to purchase Canadian crypto platform Bitvo in June 2022. FTX initially planned to use the acquisition as part of its global expansion plans. However, Bitvo was eventually able to complete the acquisition with the defunct exchange, allowing the company to continue operating even after FTX collapsed.

Bitvo CEO Pamela Draper told Cointelegraph in November that the acquisition was not successful as the company worked to meet closure requirements, the most significant of which was regulatory approval from the Alberta Securities and Exchange Commission.

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