Canadian securities regulators outline disclosure expectations for reporting issuers dealing in crypto assets

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Mar 11, 2021

On March 11, 2021, the Canadian Securities Administrators (CSA) published guidance to improve the quality of disclosures provided by issuers that engage materially with crypto assets (crypto asset reporting issuers).

In Canada, most crypto asset reporting issuers started entering the public markets in 2017 or 2018 through a restructuring transaction with, or a change of business by, an existing reporting issuer. Given this timing, most of these reporting issuers completed their first annual disclosure filings in 2019 for their annual reporting period ending in 2018. The notice describes several staff observations from their review of these initial disclosures.

The notice outlines the disclosure expectations of CSA staff in key areas such as safeguarding crypto assets, the use of crypto asset trading platforms, risk factors, material changes and promotional activities. The notice also provides guidance to crypto asset issuers on navigating certain complex accounting and disclosure issues.

The CSA will continue to evaluate the disclosure of reporting issuers engaged in crypto asset-related activities and will consider the need for further guidance or policy changes specific to these issuers.

Review the press release and guidance.

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