The Executive Director of (CIRO), Susan Lasrado, shared her opinion on the regulatory guidelines affecting Canadian users of stablecoins at the "Blockchain Futurist" conference.

According to an executive at the Canadian Investment Regulatory Organization (CIRO), the stringent requirements set by securities regulators regarding stablecoins "focus on the comprehensive protection of investors."

Speaking before a committee at the "Blockchain Futurist" conference, held in Toronto this past Tuesday, August 13, Susan Lasrado, Vice President of Member Services and Innovation at (CIRO), stated that the requirements for digital assets, issued by the Canadian Securities Administrators (CSA) in 2023, may be necessary to protect investors in Canadian markets.

The rules, which affect the decisions of many exchanges providing their services to Canadians, have led some companies like "Binance" to withdraw, while pushing others like "Gemini" to comply with the new guidelines.

Lastrado said, "If we look at the essence of the conditions imposed by the Canadian Securities Agency — such as offering stablecoins or crypto assets with a reference value as they call them — we find that they are based on fundamental principles designed to protect investors and ensure fair disclosure... It’s the protection that investors will enjoy from the perspective of the regulatory body."

Lasrado added, "I am sure that this is what the Canadian Securities Agency had in mind when they set these conditions according to the (CSA) rules issued in February 2023; crypto trading platforms operating in Canada must obtain "prior written approval" from the regulatory body before users can buy or deposit stablecoins.

In July 2023, the Canadian regulator issued guidelines for investment firms that hold digital assets, prohibiting managers from lending assets that are not considered securities. Under the (CIRO) and (CSA) laws, crypto trading platforms in Canada have been operating under a transitional period since 2021 and are now approaching the complete registration deadline as investment dealers.

However, it is worth noting that many companies, including Coinbase Canada, are listed as compliant with the CSA and "licensed to deal with Canadians."