The Canadian Securities Administrators (CSA) have announced a series of amendments to National Instrument 81-102 Investment Funds, providing enhanced regulatory clarity for reporting issuer investment funds that invest directly or indirectly in crypto assets—commonly referred to as Public Crypto Asset Funds.
These amendments introduce clear guidelines and safeguards concerning:
- The types of crypto assets that Public Crypto Asset Funds are permitted to purchase or hold,
- Investment restrictions for both Public Crypto Asset Funds and other reporting issuer investment funds in the crypto asset space, and
- Custodial requirements for crypto assets held on behalf of such funds.
Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, stated:
“Canadian securities regulators are committed to enhancing investor protections and supporting the stability and strength of our capital markets. By implementing regulations around crypto asset offerings, we aim to provide guardrails in this evolving sector.”
The CSA noted that these changes are designed to strike a balance between facilitating product innovation and embedding robust investor protection measures within the regulatory framework governing investment funds.
As the umbrella organization of Canada’s provincial and territorial securities regulators, the CSA continues to play a pivotal role in the coordinated oversight of Canadian capital markets.
